For immediate release
Chicago, IL – November 15, 2022 – Zacks.com announces the list of stocks featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Stocks recently featured in the blog include: Hyatt Hotels Corp. H, Hilton Grand Vacations Inc. HGV, Wyndham Hotels & Resorts, Inc. WH and Marriott Vacations Worldwide Corp. ACV.
Here are the highlights from Monday’s analyst blog:
Holiday season travel is set to take off: 4 stocks to watch
A growing number of Americans plan to travel this holiday season, which has led to a surge in hotel bookings. The past two years have seen a sharp drop in air travel and hotel bookings as COVID-19 gripped the world, forcing millions of people to stay indoors.
However, things seem to be getting back to normal at a faster pace than expected. This has led people to make aggressive vacation plans despite soaring airfare prices and hotel room rents. In this scenario, hotel stocks like Hyatt Hotels Corp., Hilton Grand Vacations Inc., Wyndham Hotels & Resorts, Inc. and Marriott Vacations Worldwide Corp. should benefit from it in the short term.
Hotel reservation to soar
A growing number of holiday travelers plan to stay in hotels this year. According to a National Hotel Booking Index survey commissioned by the American Hotel & Lodging Association and conducted by Morning Consult, most people who travel for leisure in the next three months plan to stay in hotels.
According to the survey, 31% of Thanksgiving travelers plan to stay in hotels while traveling, up from 21% in 2021. Additionally, 28% of Christmas travelers plan to stay in hotels while on vacation, up from 23 % Last year.
Of those who have already finalized their vacation plans and will be traveling within the next three months, 54% will be staying at a hotel. The survey also found that 28% of Americans plan to travel during Thanksgiving, while 31% plan to travel during Christmas, both in line with 2021 figures.
Among those whose work involves travel, 59% are likely to go on a business trip in the next three months. Among them, 49% plan to stay in hotels. Additionally, 61% of people plan to travel more in 2023 than they have already done this year.
Rising energy and commodity prices have made air travel and hotel rooms expensive. The Consumer Price Index rose 7.7% in October year over year. Although inflation has slowed lately after rising 8.2% in September, it is far from the Fed’s target range of 2%.
Even then, people are willing to spend more on travel and don’t mind paying higher rents. The COVID-19 pandemic has seen people stop traveling almost completely, but things are quickly returning to normal.
The holiday season is one of the busiest travel times when airfare and hotel bookings spike. This time too will be no different. A rise in hotel bookings has also seen employers go on a hiring spree. According to the latest jobs report, the Labor Department said the leisure and hospitality industry added 35,000 jobs in October. However, the industry has 1.1 million jobs below pre-pandemic levels.
The hotel is expected to gain further momentum as inflation declines further and more people plan to travel in 2023. Thus, the industry is only expected to benefit in the coming days.
Our choices
Given this situation, it would be wise to invest in hotel stocks.
Hyatt Hotels Corp. is a leading global hotel company engaged in the development, ownership, operation, management, franchising and licensing of a portfolio of properties, including hotels, resorts and properties homes and vacation homes around the world. As of March 31, 2022, H’s portfolio included more than 1,150 properties in 71 countries on six continents.
Hyatt Hotels Corporation’s expected profit growth rate for the current year is over 100%. The Zacks consensus estimate for current-year earnings has improved 70.1% over the past 60 days. H currently sports a Zacks Rank #1 (Strong Buy). You can see the full list of today’s Zacks #1 Rank stocks here.
Hilton Grand Vacations Inc. is engaged in the hotel business. HGV markets and operates vacation homes. Hilton Grand Vacations also manages and offers club membership programs, including Hilton Grand Vacations Club and The Hilton Club.
Hilton Grand Vacations’ projected earnings growth rate for the current year is 60.9%. The Zacks consensus estimate for current-year earnings has improved 19.3% over the past 60 days. HGV currently sports a #1 Zacks rank.
Wyndham Hotels & Resorts, Inc. provides a chain of hotels and resorts. WH primarily operates in Canada, Mexico, Colombia, Ecuador, Turkey, Germany, United Kingdom, Caribbean and Margarita Island in Venezuela. Wyndham Hotels and Resorts is headquartered in New Jersey.
Wyndham Hotels & Resorts’ expected profit growth rate for the current year is 21.5%. The Zacks consensus estimate for current-year earnings has improved 5.5% over the past 60 days. WH currently has a Zacks Rank #2 (Buy).
Marriott Vacations Worldwide Corp. offers vacation ownership, exchange, rental, resort and property management services. By the end of 2021, VAC had more than 120 resorts and 700,000 owners and members across a diverse portfolio of seven vacation ownership brands. Marriott Vacations Worldwide Corporation also has exchange networks and membership programs at more than 3,200 resorts in 90 countries.
Marriott Vacations Worldwide Corporation’s forecast earnings growth rate for the current year is over 100%. The Zacks consensus estimate for current-year earnings has improved 8.3% over the past 60 days. VAC currently has a Zacks rank of #3 (Hold).
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Past performance is not indicative of future results. The potential for loss is inherent in any investment. This document is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether any investment is suitable for any particular investor. It should not be assumed that investments in the securities, companies, sectors or markets identified and described have been or will be profitable. All information is current as of the date hereof and is subject to change without notice. The views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management of securities. These returns come from hypothetical portfolios composed of stocks with Zacks Rank = 1 that have been rebalanced monthly without transaction fees. These are not the returns of actual stock portfolios. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for more information on the performance figures displayed in this press release.
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Hyatt Hotels Corporation (H): Free Inventory Analysis Report
Marriot Vacations Worldwide Corporation (VAC): Free Inventory Analysis Report
Hilton Grand Vacations Inc. (HGV): Free Inventory Analysis Report
Wyndham Hotels & Resorts (WH): Free Inventory Analysis Report
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