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Hilton Worldwide Holdings Inc. (HLT), headquartered in McLean, Virginia, is a hospitality company that owns, manages, franchises, and leases hotels and resorts. Valued at $54.46 billion by market cap, the company has a portfolio of 24 world-class brands comprising more than 7,600 properties and nearly 1.2 million rooms in 126 countries and territories.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and HLT perfectly fits that description, signifying its substantial size, stability, and dominance in its industry. In its over 100-year history, the company has welcomed over 3 billion guests.
The global hospitality giant has fallen marginally from its 52-week high of $218.45, which it hit on Jun. 20. Shares of HLT are up 2.6% over the past three months, underperforming the broader S&P 500 Index’s ($SPX) 4.2% gains over the same time frame.
Longer term, HLT shares have risen 53.1% over the past year, and in 2024, the stock is up 18.7%. By contrast, the SPX is up 14.5% on a YTD basis and 25.1% over the past 52 weeks.
The stock has been trading above its 50-day moving average since early June and 200-day moving average since early June 2023, indicating a long-term bullish price trend.
On Apr. 24, HLT shares closed up more than 3% after reporting its Q1 results. The company’s adjusted EBITDA came in at $750 million, beating the consensus estimate of $705.40 million. It raised its full-year adjusted EBITDA guidance to between $3.38 billion and $3.43 billion, up from the previous forecast of between $3.33 billion and $3.38 billion, above the consensus estimate of $3.37 billion. For the full year, HLT expects net unit growth of 6% to 6.5%.
Rival Hyatt Hotels Corporation (H) has underperformed HLT. H stock has gained 32.6% in the past 52 weeks and 14% on a YTD basis.
Despite its recent underperformance compared to SPX, analysts are optimistic about HLT’s prospects. The stock has a consensus rating of “Moderate Buy” from the 19 analysts covering it, but the mean price target of $216.58 is a marginal discount to current levels.
On the date of publication, Dipanjan Banchur 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.
