HomeAway

01/09/2014 8:00 am EST

Focus: REAL ESTATE

Michael Cintolo

Vice President of Investments and Chief Analyst, Cabot Heritage Corporation

 

My top stock for 2014 is the leading online marketplace for rental properties, explains growth stock specialist Michael Cintolo, editor of Cabot Market Letter.

Through the end of September of 2013, the online firm HomeAway (AWAY) has 773,000 total paid listings among its various sites (including the popular VRBO.com site).

Growth has been steady, thanks to the recurring yearly fees that property owners pay to have their places listed (renewal rates average 75% or so).

But the big catalyst is HomeAway's recent adoption of a pay-per-booking feature, which is likely to accelerate listings growth and attract an entirely new set of customers, especially deep-pocketed property managers that are eager for business.

The stock has come alive on the pay-per-booking release, with the stock ripping higher after sitting out this year's bull market for eight months.

With five times as much traffic as its nearest competitor, HomeAway is clearly the leader, and the flood of new business it's sure to garner in the quarters ahead, should keep big investors interested. I think it's set up for an outstanding 2014.

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