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McLean, Virginia-based Hilton Worldwide Holdings Inc. (HLT) operates as one of the largest hospitality companies in the world. It owns, leases, manages, develops, and franchises hotels and resorts. With a market cap of $59.5 billion, Hilton operates through Management and Franchise and Ownership segments.
Companies worth $10 billion or more are generally described as “large-cap stocks,” Hilton fits the bill perfectly. The company operates over 8,400 properties spread across 140 countries and territories worldwide. Given its extensive operations, Hilton’s valuation above this mark is unsurprising.
HLT touched its all-time high of $275.22 on Feb. 13 and is currently trading 13.2% below that peak. Although the stock has dipped 5.8% over the past three months, it has notably outperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 14.7% decline during the same time frame.
Hilton’s performance looks much more impressive over the longer term. HLT soared 13.4% over the past six months and 16.1% over the past 52 weeks, outpacing XLY’s 6% gains over the past six months and 10% returns over the past year.
To confirm the overall bullish trend and recent downturn, HLT has traded consistently above its 200-day moving average over the past year and fallen below its 50-day moving in March.
Hilton Worldwide’s stock prices soared 4.9% after the release of its impressive Q4 results on Feb. 6. Driven by an increase in revenues from its managed and franchised properties, Hilton delivered a 6.7% year-over-year growth in overall revenues to $2.8 billion, exceeding the Street’s expectations by 1.3%. Meanwhile, the company also showcased commendable expense discipline, which led to a robust 22.3% year-over-year surge in operating income to $489 million and its adjusted EPS of $1.76 exceeded the consensus estimate by a notable margin.
Furthermore, in fiscal 2025 Hilton expects its revenues per available room to increase by a notable 2% - 3% and its adjusted EPS to range between $7.71 and $7.82 representing a 9.1% year-over-year growth in earnings at midpoint.
Hilton has also outperformed its top competitor Marriott International, Inc.’s (MAR) 2.8% uptick in stock prices over the past 52 weeks.
Among the 23 analysts covering the HLT stock, the consensus rating is a “Moderate Buy.” Its mean price target of $265.61 represents an 11.2% premium to current price levels.
