Among Priceline, Google, and MasterCard – the three highest-priced companies in the S&P 500 – where should you put your money?
There’s a lot of buzz about Priceline potentially crossing the $1,000 mark.
Should it do so, Priceline will be the first stock in the S&P 500 to be priced over $1,000 per share. After reporting better-than-expected earnings, shares surged 5%. Besides reporting earnings of $9.70 per share for the previous quarter, the company also guided current quarter revenues to between 23% and 30% higher than last year.
(Watch: Priceline moves towards $1,000)
That led a slew of Wall Street Analysts to raise their price targets:
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While the probability is very high that Priceline can at least hit $1,000, that doesn’t mean it’s a given. Meanwhile, the second- and third-highest priced stocks in the S&P 500 are also working their way toward that magical price: Google ($893) and MasterCard ($641). And like Priceline, which is up 74% this year, these other two companies are having a good run. MasterCard is up 50% while Google is up “only” 39% in 2013.
Among Priceline, Google, and MasterCard, where should you put your money?
Talking Numbers asked Erin Gibbs, Equity Chief Investment Officer for Standard & Poor's Investment Advisory Services, her take on the fundamentals. Gibbs is responsible for approximately $4.5 Billion in equity assets under advisory.
On the technicals, Talking Numbers asked Jeff Tomasulo, Managing Partner of Belpointe Alternative Investments, to look at the charts of one of these companies. He says one of the three has a bigger opportunity with less of the risk compared to the others.
To see what Gibbs and Tomasulo have to say about Priceline, Google, and MasterCard, watch the video above.
1. Gibbs is the Equity Chief Investment Officer for Standard & Poor's Investment Advisory Services LLC.
2. S&P Capital IQ Equity Research provides qualitative buy/hold/sell recommendations on equities which may differ from recommendations provided by Standard & Poor's Investment Advisory Services LLC.
3. For the securities discussed, Standard & Poor's Investment Advisory Services LLC may have provided recommendations to its clients which differ from recommendations provided in this interview.
4. S&P Capital IQ and/or one of its affiliates has performed services for and received compensation from the companies mentioned in this document during the past twelve months.
5. During the past 12 months, S&P Capital IQ and/or one of its affiliates may have performed services for, and received compensation from, other companies that may be discussed during the course of this interview.
6. MA, PCLN, GOOG are positions in portfolios sub-advised by SPIAS.]