Hospitality is in style again as the Covid pandemic makes its way to the exit. With business and vacation travel on the rise, it's no surprise that on Monday the Relative Strength (RS) Rating for hotels major Hilton climbed to a new percentile, rising to 77 from 69, according to MarketSmith. Hilton stock recently broke out.
The raised 77 rating means that Hilton stock is outperforming 77% of stocks on price appreciation. It's a significant improvement but a few points shy of ideal.
Market research shows that the best stocks to buy and watch often have an RS Rating above 80 as they launch their biggest price moves. See if Hilton can continue to show renewed price strength and clear that threshold.
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Hilton Stock A Favorite Of Funds
Hilton operates 7,061 properties under 19 brand names in 123 countries and territories. On Feb. 1, Hilton opened its newest property, the Embassy Suites by Hilton in Aruba.
Among its other ratings, Hilton stock has a 79 Composite Rating, out of 99, and a 76 Earnings Per Share Rating. It sports a B- Accumulation/Distribution Rating, on an A+ to E scale. The B- rating indicates that moderately more big money investors such as ETFs and mutual funds are loading up on Hilton stock than selling.
One standout area is fundamentals. Hilton reported quarterly earnings growth ranging from 68% to more than 1,000% over the past four quarters. During that time its revenue growth ranged from 35% to 106%. In its most recent quarter Hilton recorded a 68% top line increase to $1.31 a share on a 35% hike in revenue to $2.37 billion. Notice that although the numbers were strong, they were down from the dazzling numbers it put up earlier in the year. Investors will look to see whether it can renew its upward march in sales and profit growth when Hilton reports fourth quarter earnings results on Thursday before the market opens.
Still Within A Buy Zone
Hilton stock is still within the 5% buy zone after breaking past a 143.87 buy point in a cup without handle. On Monday, Hilton stock dipped just 0.40% to 146.23 on a consolidation day for the market.
Hilton stock holds the No. 7 rank among its peers in the Leisure-Lodging industry group. Marriott International and InterContinental Hotels are among the group's highest-rated stocks.
IBD's proprietary Relative Strength Rating measures technical performance by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in our database.
