Hilton reported a 75% year-over-year surge in profits last quarter, and that was on the heels of 121% leap in EPS the prior quarter. Sales growth has kept pace. On Tuesday the Relative Strength (RS) Rating for Hilton stock climbed to 73, putting it in the top 27% of all stocks for price performance the past 12 months.
It's a good but not yet terrific rating. The market's biggest winners often have an RS Rating above 80 as they launch their biggest runs. See if Hilton can continue to show renewed price strength and clear that threshold.
Hilton Earnings Climbed As Much As 130%
Hilton, which is based near Washington, D.C., in McLean, Va., reported 75% earnings growth in the latest quarter, to $1.24 per share, while sales grew 33% to $2.29 billion. The prior three quarters Hilton's earnings soared 130%, 68% and then 121% as the pandemic waned and people began traveling again. Hilton's revenue climbed 69%, 35% and then 33% during those three quarters.
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Like its RS Rating, Hilton's other ratings are OK as the travel industry recovers, but not yet outstanding. Among its other key ratings, Hilton has a decent 79 Earnings Per Share Rating and a 75 Composite Rating. One bullish indicator is that the number of funds holding Hilton shares rose from 1,942 in September to 2,070 as of March, the latest quarter that figures are available. One yellow flag is the hotel chain's D Accumulation/Distribution Rating, on an A+ to E scale. The D rating shows that ETFs, mutual funds and other institutional investors are selling more shares than buying.
Fashioning A Cup With Handle
Hilton is working on a cup with handle with a 152.99 entry. See if the stock can clear the breakout price in heavy trade. On Tuesday, Hilton shares rose a bit above 145 even as the market retreated ahead of the Fed rate announcement on Wednesday.
Hilton holds the No. 7 rank among its peers in the Leisure-Lodging industry group. Marriott International and Choice Hotels International are among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
The exclusive Relative Strength Rating from Investor's Business Daily measures price movement with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the trailing 52 weeks stacks up against all the other stocks in our database.
