WWhile US capital markets have been boosted recently by a broad tech-driven bull run, leisure, travel and other cyclical stocks have lagged behind. Although they have recovered, they haven’t seen a V-shaped rally as sharply as tech stocks.
Hotel stocks in particular have struggled to regain good business performance as repeated blockages and travel restrictions have deterred business and leisure travelers from moving around the world. That’s not to say, however, that they haven’t recovered at all over the past few quarters. Many analysts were anticipating a resurgence in traffic to hotels in the summer of 2021 due to pent-up demand, although this does not appear to have translated into stock price gains.
Many hotel titles move somewhat in tandem, as do titles in other sectors. The trick is to find the one who can outperform the rest of the pack. In order to gain an advantage, every piece of inventory information must be exploited to the fullest. TipRanks’ website traffic tool can be used to collect information on stocks that have seen gains in visits to their online sites. The financial aggregation company has partnered with SEMrush (SEMR) to make alternative datasets available to the curious investor.
Granted, not all hotel reservations are made through their respective websites. Despite this, many reservations are made directly with the hotel, or at least those who have booked will visit the official site for more information. Website traffic can be a signal indicative of where a hotel’s stock is going. Let’s take a look at the current data and combine it with the opinions of financial analysts.
Hilton around the world
The legendary hotel chain has seen its share price remain in a fairly stable price channel after a sharp rise in valuation from January to February 2021. These months have included with them a large investor enthusiasm for a reopening linked to the economy. and travel, and therefore most actions in the sector have benefited.
Unfortunately for Hilton (HLT), fears over the spread of the Delta variant of COVID-19 have kept borders closed and individuals on guard. Instead of a continuous rebound, the stock traded sideways during the majority of the generally lucrative summer months and only recently experienced a slight break from its previous pattern.
By inspecting hilton.com traffic data on TipRanks, an upward trend from quarter to quarter can be identified. From the second to the third quarter, the total number of visits of all devices increased by 6.92%, while the share price increased by 9.53%. Longer term, visits are up 31.32% since the start of 2020 compared to the same months of 2021. This positive statistic signals a steady upturn in investor fears from last year.
Analysts took into account the recent gains in stock prices, and David Katz of Jefferies Group weighed in. In its report, Katz believes that âthe acceleration of net unit growth, cash flow and returns on capital assessment.â The analyst sees a clear path to recovery for HLT and remained confident in an âopportunity to long-term value “.
Katz rated the stock bullish as a buy and gave it a price target of $ 169. This raised target of $ 159 now represents a possible increase of 17.32% over 12 months.
On TipRanks, Hilton Worldwide’s average price target is $ 145.45, suggesting a potential 12-month increase of 0.45%. Additionally, the HLT analysts’ rating consensus is a moderate buy, based on 5 buy ratings and 6 hold ratings.
The world’s largest hotel and accommodation brand by number of rooms has had a similar saga, although it appears to have benefited more in the past two months as cyclical travel has intensified. Marriott International (MAR) also received an increase of around 30% from January to February 2021, then cooled for the vast majority of the summer. The stock has gained around 20% in the past two months.
The major hospitality player recently signed agreements on a global scale, notably with hotels in Saudi Arabia and Brazil. Meanwhile, business traveler trends remain calm, although they are gradually increasing. Some investors expect a sharp increase in leisure bookings throughout the next vacation and holiday season.
Website traffic data on TipRanks shows a positive direction ahead of the release of the company’s expected results on November 3. Growth can be seen in the total number of device visits to marriott.com and the share price during the third quarter. Quarter over quarter, the total number of device visits increased 4.49%, while the share price was up 8.47%. Speaking on the difference between the cumulative periods of 2020 and 2021, visits to Marriott’s main website increased by 21.04%.
Reporting on the state of the travel industry, Robert W. Baird’s Michael Bellisario wrote that âwith the worst of the Delta variant in the rearview mirror, the number of office occupations has continued to increase. and travel intentions continue to increase â.
Regarding an analysis on the stock, Stuart Gordon of Berenberg Bank argued that âwith reservation windows still very short and uncertainty about a formal return to power for companies, we are hesitant to assume that trends recent ones will continue through the remainder of 2021.. âGordon kept his confidence at a moderate level and maintained Hold’em odds.
On TipRanks, MAR has a Hold Analyst Rating Consensus, based on 1 Buy and 8 Hold ratings. Marriott International’s average price target is $ 151.57, indicating a possible 12-month decline of -6.34%.
Disclosure: At the time of publication, Brock Ladenheim does not have a position in any of the titles mentioned in this article.
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