Priceline.com was up 14% yesterday after beating Q2 earnings estimates on strong sales and bookings and guiding above expectations for its current third quarter. The company noted that its results have been and continue to be helped by strong demand for leisure travel this summer, which has been spurred by lower prices via heavy discounting.
The upside earnings surprise for Priceline.com followed recent better-than-expected reports from competitors Expedia and Orbitz Worldwide . These strong reports have pushed the online travel agencies to new highs. Priceline.com is now at a 9-year high while Expedia is hitting a new 52-week high. Additionally, Orbitz, which skyrocketed 77% last week after it surprised the street by returning to profitability, hovers at a 10-month high.
The strong stock performance doesn’t stop with the online travel agencies though. Many other travel-related stocks are at impressive technical levels. Car rental companies Hertz , Avis Budget , and Dollar Thrifty are all right at new 52-week highs.
Hotel companies Starwood Hotels , Marriott International , Intercontinental Hotels , and Wyndham Worldwide are essentially at their highest levels since the fall.
Take a look at the dramatic outperformance in these travel-related stocks since the markets’ March bottom:
Online Travel Agencies
Orbitz Worldwide +137%
Dollar Thrifty +3,010%
Avis Budget +2,655%
Wyndham Worldwide +391%
Starwood Hotels +185%
Intercontinental Hotels +105%
Marriott International +83%
S&P 500 +49%
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