Is Hilton Worldwide Stock Outperforming the Dow?

Valued at $62.6 billion by market cap, Hilton Worldwide Holdings Inc. (HLT) is a global leader in the hospitality industry. Headquartered in McLean, Virginia, the company operates an extensive portfolio of world-renowned hotel brands, delivering exceptional guest experiences and setting the standard for innovation and excellence in hospitality services.

Companies valued at over $10 billion are often categorized as “large-cap stocks,” which Hilton Worldwide exemplifies through its strong market presence, innovation, and leadership in the hospitality sector. Hilton’s commitment to delivering exceptional guest experiences and pioneering advancements in hotel services underscores its stability, adaptability, and capacity to thrive in a competitive and ever-evolving global industry.

Hilton Worldwide’s shares are down slightly from their 52-week high of $259.01, achieved on Dec. 6. Over the past three months, the stock has gained 21.4%, significantly outperforming the broader Dow Jones Industrials Average’s ($DOWI8% gains over the same time frame.

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Over the longer term, HLT stock has risen 45.2% over the past 52 weeks and gained 41.1% on a YTD basis, significantly outperforming the Dow's YTD growth of 17.1% and its 22.3% return over the past year.

HLT's bullish momentum is evident as the stock has consistently traded above its 50-day moving average since early November and maintained its position above the 200-day moving average throughout the past year.

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On Oct. 23, Hilton Worldwide reported its Q3 earnings, revealing mixed results that led to a 1.9% decline in its stock price. The company achieved revenue growth of 7.3% year over year to $2.87 billion, though this came in below the consensus estimate of $2.91 billion. The company posted an adjusted EPS of $1.92, exceeding consensus estimates by 4.3%, and EBITDA of $904 million, beating projections by 1.9%. 

Management reaffirmed its full-year guidance, projecting adjusted EPS of $6.98 and EBITDA of $3.39 billion at the midpoint. This aligns with market expectations and reflects continued confidence in operational performance. 

Its rival, Marriott International, Inc. (MAR), has gained 34.8% over the past 52 weeks and 29.4% on a YTD basis, underperforming HLT in both time frames.

Given its recent strong price performance, analysts maintain a cautiously optimistic outlook on Hilton Worldwide. The stock has a consensus "Moderate Buy" rating from 22 analysts and a mean price target of $239.24, which indicates that the stock trades at a premium.

On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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