Hilton Stock Shows Rising Strength, Currently In A Buy Zone; Does Dazzling Quarter Indicate That It’s Turned The Corner?

One quarter does not a turnaround make. But if recent results are an indication, better days may be ahead for hotel giant Hilton. On Monday, the Relative Strength (RS) Rating for Hilton Worldwide (HLT) climbed to 82, up from 79 the day before.


The 82 RS Rating means that Hilton stock price has outperformed 82% of all stocks over the past year. Market research shows that the stocks that go on to make the biggest gains typically have an 80 or better RS Rating as they begin their biggest climbs.

Hilton Stock Purchases Strong

Hilton stock also has a good but not great 76 Composite Rating, of a best-possible 99. The Composite Rating combines five separate proprietary IBD ratings, based on key fundamental and technical criteria, into one easy-to-use score.

Its B Accumulation/Distribution Rating, on an A+ to E scale with A+ extremely bullish, shows that institutional investors are buying its stock. The number of funds owning Hilton stock increased from 1605 last December to 1780 as of September. Further, its relative strength line, which compares a stock’s performance vs. the S&P 500, is near its all-time high, a bullish sign, and has been rising since August.

Taking a look at revenue and profit performance, Hilton Worldwide has posted rising EPS growth over the last two quarters. Sales gains have also risen during the same period. To be sure, its profits shrank and sales tapered off last year amid the pandemic. It posted three quarters of shrinkage. Then came last quarter: a 192% surge in earnings to 56 cents per share on a 136% leap in revenue to $1.33 billion. With Covid again in retreat, if consumers are itching to travel the spigot could open up fully for Hilton stock, though there’s no guarantee of course.

Peers In Hotels Group

Hilton stock holds the No. 2 rank among its peers in the Leisure-Lodging industry group. Wyndham Hotels (WH) and Choice Hotels International (CHH) are also among the group’s highest-rated stocks.

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Hilton stock is also in a buy zone after climbing above a 136.99 entry in a cup without handle. The proper buying range extends to 5% above the initial entry. Demonstrating its strength, Hilton rose 0.3% Monday to 138.53, even as the market correction overall deepened.

When looking for the best stocks to buy and watch, be sure to pay attention to relative price strength.

IBD’s unique Relative Strength Rating identifies price performance with a 1 (worst) to 99 (best) score. The score shows how a stock’s price behavior over the last 52 weeks holds up against all the other stocks in our database.


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