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Hyatt Hotels (H) Surges 6.0%: Is This an Indication of Further Gains?

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Hyatt Hotels (H - Free Report) shares ended the last trading session 6% higher at $110.71. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 4.7% loss over the past four weeks.

Hyatt’s rally is buoyed by optimism concerning the company’s inclusion in the S&P MidCap 400 index. The company will be replacing National Instruments Corp. (NATI) in the index, effective Oct 12, 2023.

This hotel operator is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents a year-over-year change of -3.1%. Revenues are expected to be $1.63 billion, up 5.8% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Hyatt Hotels, the consensus EPS estimate for the quarter has been revised 2.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on H going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Hyatt Hotels is a member of the Zacks Hotels and Motels industry. One other stock in the same industry, Choice Hotels (CHH - Free Report) , finished the last trading session 2.2% higher at $124.05. CHH has returned -5.4% over the past month.

Choice Hotels' consensus EPS estimate for the upcoming report has changed +0.7% over the past month to $1.88. Compared to the company's year-ago EPS, this represents a change of +20.5%. Choice Hotels currently boasts a Zacks Rank of #3 (Hold).


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