On Thursday, “Mad Money” host Jim Cramer examined the online travel industry and determined that Priceline.com’s stock is currently the best buy.
“In online travel, Priceline.com is the undisputed best of breed name,” Cramer said. “That's why its stock is up over 50 percent year to date, that's why it hit a new high today and that's why I think it's also the one to buy, even though it's also the most expensive.
“Remember, we always pay up for best of breed and that's especially true in a market like we have now that actually discriminates between well run companies and lousy ones.”
Cramer likes Priceline over its competitors because it, 1) looks for growth opportunities, such as the budding European market, 2) executes well, as the company recently reported a 33-cent earnings beat with 44 percent bookings growth and upside guidance for next quarter.
Even though Priceline’s stock is currently trading at around $712 a share, Cramer thinks it’s worth buying now.
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