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Bull Of The Day: Hilton Grand Vacations (HGV)

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Hilton Grand Vacations (HGV - Free Report) is a Zacks Rank #1 (Strong Buy) and it sports a B for Value and an A for Growth.  This stock crushed earnings when it reported back in November and that broke a streak of three misses.  Let’s explore more about this company in this Bull of The Day article.

Description

Hilton Grand Vacations Company, LLC, a division of Hilton Worldwide, is engaged in hospitality business. It markets and operates vacation ownership resorts. The company also manages and serves club membership programs which include Hilton Grand Vacations Club(R) and The Hilton Club(R). It operates primarily in USA, Indonesia, Italy, Mexico, New Zealand, Portugal, Scotland and Thailand. Hilton Grand Vacations Company, LLC is headquartered in Orlando, Florida.

Earnings History

When I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.

For Hilton Grand Vacations, I see one beat and three misses of the Zacks Consensus Estimate.  That is not great to see, but by itself that is not enough to make the company a Zacks Rank #1 (Strong Buy).

The average positive earnings surprise over the course of the last year works out to be 3.6%.

Earnings Estimates Revisions

The Zacks Rank tells us which stocks are seeing earnings estimates move higher. 

Over the last 60 days, earning estimates have moved up for HGV.

This quarter has moved up from $0.73 to $0.77.

The full fiscal year 2022 has remained at $3.09 over the last 60 days. 

Next fiscal year has seen the estimate move from $3.74 to $3.85.

Positive movement in earnings help move this stock to a Zacks Rank #1 (Strong Buy).

Valuation

The valuation for this name is low even with the solid growth.  I see a forward PE of 11x which is a little low given the company is coming off a quarter that saw topline growth of more than 20%.  The price to book multiple is 2.4x. Price to sales comes in a 1.3x while the stock carries operating margins of roughly 9%.  


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