Travel + Leisure is in a sweet spot after two years of pandemic created a strong desire for leisure among consumers. The top timeshares and vacation clubs operator reported a nearly 300% jump in profit last quarter, the latest in a string of strong reports. On Thursday, the IBD Relative Strength (RS) Rating for Travel + Leisure climbed to 81, up from 74 the day before. Travel + Leisure stock closed up 0.5% to 58.10 Thursday.
The new 81 RS Rating is significant in that it puts Travel + Leisure stock in a select group. Market research shows that top-performing stocks tend to have an RS Rating north of 80 as they launch their biggest climbs.
Travel + Leisure Stock Seeing Heavy Accumulation
Among its other key ratings, the Orlando, Fla.-based company boasts an 86 Composite Rating putting it in the top 14% overall. And watchlist candidate Travel + Leisure stock's B+ Accumulation/Distribution Rating, on an A+ to E scale, indicates fairly heavy buying by mutual funds, ETFs and other institutional investors. One yellow flag to watch is its lackluster 70 EPS Rating. The rating comes largely from a huge profit drop during the stay-at-home early part of the pandemic. Over the last four quarters it's consistently posted double and triple digit profit growth.
In terms of fundamentals, over the last four quarters earnings per share grew 140%, 179%, 43% and then 272% last quarter, to $1.19. Revenue during that time rose 13%, 132%, 37% and then 35% in its latest quarter, to $870 million.
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Travel + Leisure stock is trying to complete a consolidation with a 68.36 buy point. See if the stock can break out in heavy volume.
Travel + Leisure stock earns the No. 8 rank among its peers in the Leisure-Services industry group. SeaWorld Entertainment and Avis Budget 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.
IBD's unique Relative Strength Rating tracks technical performance by showing how a stock's price action over the last 52 weeks compares to that of other stocks on the major indexes.
