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(PCLN) P/E: 19.1, EPS Growth: 20%

Priceline.com is one of the fastest growing Internet companies in the U.S.--thanks to Europe, not necessarily William Shatner's corny ads.

The "Name Your Own Price" travel site's stock price nearly doubled in 2009 thanks to strong growth in European hotel reservations through the company's Booking.com site.

Despite the big move, the stock trades at about 19 times earnings estimates for 2010. That makes it cheaper than Orbitz, but more expensive than Expedia.com. Still, analysts expect the company's earnings to rise 25% in 2010 so Priceline seems worth the price.

Given that Europe is a highly fragmented hotel marketplace, Booking.com has become "the go-to site for anyone looking to plan travel in Europe," said Frederick Moran, an analyst with The Benchmark Company.

While Expedia is also trying to get a piece of that pie, Expedia has access to just 30,000 European hotels in comparison with Priceline's nearly 70,000 hotels.

Moran estimates that Booking.com's international business represents about two-thirds of Priceline's cash flow. And since traditional travel agents still account for about 70% of the European market, online booking services that expand into Europe have enormous growth potential for the next few years.

--Annalyn Censky

NEXT: WMS Industries

Last updated February 13 2010: 11:57 AM ET
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