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Hilton Worldwide Holdings Inc. (HLT) is a global hospitality leader involved in owning, leasing, managing, developing, and franchising hotels and resorts. The McLean, Virginia-based company, valued at $60.9 billion, operates through its Management and Franchise and Ownership segments.
The hotel giant has substantially outperformed the broader market over the past year. Over the past 52 weeks, HLT has soared 47.9%, outpacing the S&P 500 Index’s ($SPX) 30.1% returns. In 2024, HLT gained 37.4% compared to SPX’s 24.1% gains on a YTD basis.
Narrowing the focus, HLT has also outpaced the Defiance Hotel Airline And Cruise ETF’s (CRUZ) 34.8% returns over the past 52 weeks and a 22.4% rise on a YTD basis.
On Oct. 23, HLT released its Q3 earnings, and its stock plunged 1.9%. While it beat the adjusted EPS and EBITDA estimates by 4.3% and 1.9%, its revenue narrowly missed the analysts' estimate.
For the current fiscal year, ending in December, analysts expect Hilton to report an EPS growth of 12.7% annually to $7. The company has a history of surpassing the consensus EPS estimates in each of its four quarterly earnings reports.
Among the 22 analysts covering the HLT stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, two “Moderate Buys,” and 13 “Holds.”
This configuration is slightly less bullish than a month ago, with eight analysts recommending a “Strong Buy.”
On Oct. 24, TD Cowen maintained a “Buy” rating on Hilton Worldwide but reduced its price target to $256 from $265, citing weaker-than-expected Q3 RevPAR growth of 1.4% (vs
While HLT currently trades over its mean price target of $237.94, the Street-high target of $273 represents a potential upside of 9.1% from the current market prices..
