Priceline.com (NASDAQ: PCLN) is an online travel agency. It offers a range of services, including airline tickets, hotel rooms, car rentals, vacation packages and cruises, as well as destination and travel insurance services. The company operates a Name Your Own Price system, which allows users to make offers for travel services at prices they set. It also markets fixed-price travel products and offers various online financial services. Expedia (NASDAQ: EXPE) is a major competitor.

The firm pleased investors earlier in the month, when it reported Q4 EPS of 96 cents and revenues of $334.9 million. Analysts had been expecting 84 cents and $329.3 million. In discussing the solid quarter, the CEO emphasized continued momentum in growth of gross bookings. International growth accelerated to 113% year over year and the domestic growth rate increased 24% sequentially. Management also guided Q1 EPS to 50-60 cents (53 cent consensus) and FY08 EPS to $4.80-$5.10 ($4.90 consensus).

The stock price popped on the news and then moved into a bullish "flag" consolidation pattern. Stocks frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the shares with three "strong buys", five "buys" and six "holds". Analysts expect a 25% growth rate, through the next year. The PCLN EPS Growth rate (113.33%), Return on Assets (13.20%), Return on Investment (19.99%) and Return on Equity (33.53%) compare favorably with industry, sector and S&P 500 averages. Over the past 52 weeks, the stock has traded between $49.80 and $129.24. A stop-loss of $104.25 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in either of the stocks mentioned above.