Is Hilton Stock Underperforming the Nasdaq?
Hilton Worldwide Holdings Inc. (HLT), headquartered in McLean, Virginia, is a hospitality company that manages, franchises, owns, and leases hotels and resorts. Valued at $66.3 billion by market cap, the company provides hospitality services through various hotel brands, such as Waldorf Astoria, Hilton Hotels & Resorts, Home2 Suites by Hilton, and more, as well as owns over 8,300 properties across 138 countries.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and HLT perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the lodging industry. Hilton's diverse brand portfolio, including Hampton and Hilton, demonstrates its robust market presence and a vast room network. The Hilton Honors loyalty program, with 195 million members, drives customer retention and attracts new guests, ensuring steady revenue. With a growth in loyalty program membership, Hilton's customer base and market reach continue to expand.
Despite its notable strength, HLT slipped 1.5% from its 52-week high of $287.40, achieved on Nov. 28. Over the past three months, HLT stock has gained 2.5%, underperforming the Nasdaq Composite’s ($NASX) 8.5% gains during the same time frame.
In the longer term, shares of HLT rose 14.5% on a YTD basis and climbed 11.7% over the past 52 weeks, underperforming NASX’s YTD gains of 20.5% and 21.1% returns over the last year.
To confirm the bullish trend, HLT has been trading above its 50-day moving average since early November. The stock has been trading above its 200-day moving average since early May.
On Oct. 22, HLT shares closed up more than 3% after reporting its Q3 results. Its revenue stood at $3.1 billion, up 8.8% year over year. The company’s adjusted EPS came in at $2.11, up 9.9% from the year-ago quarter.
HLT’s rival, Marriott International, Inc. (MAR) shares have lagged behind the stock, with an 8.8% uptick on a YTD basis and 5% gains over the past 52 weeks.
Wall Street analysts are reasonably bullish on HLT’s prospects. The stock has a consensus “Moderate Buy” rating from the 24 analysts covering it, and the mean price target of $288.75 suggests a potential upside of 2% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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