#3 - Hilton International (NYSE:HLT)
If you’re looking for travel stocks to buy at the moment, you can do worse than look at the companies that had strong balance sheets prior to the pandemic. Well-run companies tend to bounce back better when hit with adversity. And that’s a solid argument for Hilton International (NYSE:HLT).
This was a thought echoed by Gina Sanchez, CEO of Chantico Global, who gave an interview in late March in which she commended the company for its strong balance sheet. One reason for Sanchez’s optimism is the belief in two things.
First, that there the United States is indeed seeing the peak of the novel coronavirus cases in mid-April as forecast. And second, that as the economy begins to reopen, business travel will rebound faster than recreational travel. As Sanchez noted, “I think that you’re going to see a lot of pent-up plans that need to happen at some point soon.”
This idea of “betting on the country” was also expressed by hedge fund manager, Bill Ackman, who expressed, “If you can buy Hilton at $60 when it was trading at $120, it’s going to be a bargain.”
After hitting a low around $55, a stock price that chopped off nearly half of the stock’s opening price in 2020, HLT stock is starting to recover. Part of the reason for that is because investors approve of the company’s plans to cut “non-essential” costs. These measures included suspending its share buyback program and its dividend payouts. Additionally, CEO Christopher Nassetta will not take any salary for the remainder of 2020 and the executive committee will take 50% pay cuts across the board until the pandemic abates.
Stock #6 is giving investors a great entry point
About Hilton Worldwide
Hilton Worldwide Holdings Inc, a hospitality company, engages in managing, franchising, owning, and leasing hotels and resorts. It operates through two segments, Management and Franchise, and Ownership. The company engages in the hotel management and licensing of its brands. It operates luxury hotels under the Waldorf Astoria Hotels & Resorts, LXR Hotels & Resorts, and Conrad Hotels & Resorts brand; lifestyle hotels under the Canopy by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Tempo by Hilton, and Motto by Hilton brand; full service hotels under the Signia by Hilton, Hilton Hotels & Resorts, and DoubleTree by Hilton brand; service hotels under the Hilton Garden Inn, Hampton by Hilton, and Tru by Hilton brand; all-suite hotels under the Embassy Suites by Hilton, Homewood Suites by Hilton, and Home2 Suites by Hilton brand; and economy hotel under the Spark by Hilton brand, as well as Hilton Grand Vacations.
Read More - Current Price
- $208.08
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 9 Buy Ratings, 8 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $207.59 (0.2% Downside)
