U.S. Markets closed

Zacks Industry Outlook Highlights: Priceline, Orbitz Worldwide, Google and ValueClick

For Immediate Release

Chicago, IL – February 23, 2012 – Today, Zacks Equity Research discusses the e-Commerce Industry, including Priceline (PCLN), Orbitz Worldwide (OWW), Google Inc (GOOG) and ValueClick Inc. (VCLK).

A synopsis of today’s Industry Outlook is presented below. The full article can be read at  http://www.zacks.com/stock/news/70086/e-Commerce+Stock+Outlook+-+Feb.+2012


We can strongly recommend very few stocks in the sector at this point. However, longer-term opportunities abound, as have been outlined below.

Online travel company Priceline (PCLN) is in a strong growth market. Consequently, it should continue to benefit from international expansion and customers moving online. Domestic growth will likely be slower and mainly driven by the continued improvement in the economy.

While Orbitz Worldwide (OWW) is a much smaller player with more limited resources, it too should benefit from these trends. However, expansion in China will be disappointing, as local players and the government continue to make operation difficult for U.S. players. Occupancy tax issues are likely to remain a point of contention and online travel agents have recently scored a few wins.

The search market is dominated by Google Inc (GOOG), which has seen phenomenal growth rates over the last five years. The company is a leading innovator, using its engineering talent to extend its position in the computing platform to the mobile platform. The company has a huge cash balance that we were concerned was not being put to the best use. However, it remains acquisitive, which should further round out its product portfolio, build on current strengths and help expansion into new areas.

Google’s main challenge is the increasing competition from not just archrival Yahoo, but also challenger Microsoft, who’s Bing search engine continues to gain ground.

A much smaller provider of Internet advertising solutions and online marketing services, ValueClick Inc. (VCLK) should also benefit from the strength in the online advertising market (particularly display), the recently acquired Dotomi, international expansion, restructuring actions and strong cash flows. However, as firms with larger advertising budgets increase spending on Internet advertising, many of the services performed by ValueClick could be done in-house. This is a risk of investing in the stock.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2679.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment

Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4581.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter:  https://twitter.com/zacksresearch

Join us on Facebook:  https://www.facebook.com/ZacksInvestmentResearch

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339


Read the analyst report on PCLN

Read the analyst report on OWW

Read the analyst report on GOOG

Read the analyst report on VCLK

Zacks Investment Research

More From Zacks.com