Today’s 2014 Top Picks update places this contributor’s original Top Pick on Hold, and adds a new Top Pick whose shares were just initiated with a “Buy” rating by Nomura Securities.
Hold HomeAway (AWAY)
from Cabot Top Ten Trader
My top pick of HomeAway (AWAY) has continued to execute on its business plan, as its new pay-per-booking feature has allowed the firm to expand its dominance of the online vacation rental market, helping revenue growth to accelerate in the process. But the stock looks sick! Part of this was due to the growth stock collapse in the spring, but fears of increased competition, especially with privately held AirBnb (which has gotten huge amounts of venture capital money), has hurt investor perception.
Frankly, at this point, I think AWAY is a decent hold. It doesn’t have the momentum I prefer, but it’s acting better and looks like it wants to continue its rebound in the weeks ahead. That said, it’s not a buy in my book, and shares will probably need months to repair the damage during the stock’s huge March-April correction.
Michael Cintolo, Cabot Top Ten Trader, www.cabot.net, 978-745-5532, July 7, 2014