The Hilton hotel chain's earning growth ranged from 68% to 130% over the past four quarters, and sales growth kept pace. Consumers and business people are resuming travel and Hilton is getting a lift from the trend. On Tuesday, the Relative Strength (RS) Rating for Hilton stock climbed from 66 to 71.
Hilton Stock Making Gains; Will They Stick?
The upgraded 71 RS Rating shows that watchlist candidate Hilton stock has outperformed 71% of stocks for price performance. It's trending in the right direction, but it has a ways to go to get into the winner's circle. Market research confirms that stocks that go on to make the biggest gains tend to have an 80 or better RS Rating as they launch their biggest climbs. See if Hilton can continue to show renewed price strength and clear that threshold.
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Hilton reported a 75% leap in earnings last quarter, to $1.24 per share. Revenue grew 33% to $2.29 billion. The prior quarter it recorded a 121% spike in EPS, again on 33% sales growth. Hilton stock is building a cup with handle with a 152.99 entry. See if the stock can break out in heavy volume. On Tuesday, Hilton eased fractionally to 142.47.
Hilton Has Very Hospitable Ratings
Among its other indicative ratings, Hilton stock has a 77 Composite Rating, putting it in the top quartile for a group of fundamental and technical metrics. Again, more work is needed; the best stocks usually have a 90 or better rating. It also carries a strong 80 Earnings Per Share Rating, reflecting hefty profit growth this past year. Its D Accumulation/Distribution Rating shows that institutional investors are still selling more shares than buying.
Hilton stock earns the No. 7 rank among its peers in the Leisure-Lodging industry group. Marriott International and Hyatt Hotels are among the group's highest-rated stocks.
When researching the best stocks to buy and watch, it's important to keep a close on eye on relative price strength.
IBD's unique Relative Strength Rating identifies market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price action over the last 52 weeks matched up against all other stocks.
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