It does not take an in-depth analysis to realize that the hotel industry has been under serious pressure during the worldwide COVID pandemic. It could take years for the industry to bounce back. Many hotels are going to go completely out of business. Today’s Bear of the Day gives me a chance to take a closer look at one big name in the hotel industry to see how bad the earnings outlook has been hit.
I’m talking about Hyatt Hotels (H - Free Report) . Hyatt Hotels Corporation, a hospitality company, develops, owns, operates, manages, franchises, licenses, or provides services to hotels, resorts, and other properties. As of June 30, 2020, its hotel portfolio consisted of approximately 900 hotels in 65 countries.
Currently, Hyatt is a Zacks Rank #5 (Strong Sell). The reason for the negative Zacks Rank is the series of negative revisions coming from analysts. Over the last sixty days, six analysts have cut their earnings estimates for the current year while five have done so for next year. The impact has been rather dramatic and bearish. Current year Zacks Consensus Estimates were cut down from a $3.04 loss to at $4.42 loss. Next year’s number has been cut from a 50-cent loss to a $2.02 loss.
While a $2.02 per share loss is not something long-term investors want to see, it’s important to point out the growth here. Analysts are forecasting EPS growth of 54.36%. Looking at the revenue numbers, current year revenues are slated to come in at $2.32 billion. That is a 53.79% contraction in sales for this year. Next year, that number is forecast to balloon 56.96% to $3.64 billion. The bottom line here is, the stock is down but not out.
The Hotels and Motels industry currently ranks in the Bottom 9% of our Zacks Industry Rank. There is only one stock in this industry which is a Zacks Rank #2 (Buy). That is Green Tree Hospitality Group (GHG - Free Report) . There are several Zacks Rank #3 (Hold) stocks in the industry like Extended Stay America .
Just Released: Zacks’ 7 Best Stocks for TodayExperts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
It does not take an in-depth analysis to realize that the hotel industry has been under serious pressure during the worldwide COVID pandemic. It could take years for the industry to bounce back. Many hotels are going to go completely out of business. Today’s Bear of the Day gives me a chance to take a closer look at one big name in the hotel industry to see how bad the earnings outlook has been hit.
I’m talking about Hyatt Hotels (H - Free Report) . Hyatt Hotels Corporation, a hospitality company, develops, owns, operates, manages, franchises, licenses, or provides services to hotels, resorts, and other properties. As of June 30, 2020, its hotel portfolio consisted of approximately 900 hotels in 65 countries.
Currently, Hyatt is a Zacks Rank #5 (Strong Sell). The reason for the negative Zacks Rank is the series of negative revisions coming from analysts. Over the last sixty days, six analysts have cut their earnings estimates for the current year while five have done so for next year. The impact has been rather dramatic and bearish. Current year Zacks Consensus Estimates were cut down from a $3.04 loss to at $4.42 loss. Next year’s number has been cut from a 50-cent loss to a $2.02 loss.
While a $2.02 per share loss is not something long-term investors want to see, it’s important to point out the growth here. Analysts are forecasting EPS growth of 54.36%. Looking at the revenue numbers, current year revenues are slated to come in at $2.32 billion. That is a 53.79% contraction in sales for this year. Next year, that number is forecast to balloon 56.96% to $3.64 billion. The bottom line here is, the stock is down but not out.
The Hotels and Motels industry currently ranks in the Bottom 9% of our Zacks Industry Rank. There is only one stock in this industry which is a Zacks Rank #2 (Buy). That is Green Tree Hospitality Group (GHG - Free Report) . There are several Zacks Rank #3 (Hold) stocks in the industry like Extended Stay America .
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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