| Dividend cuts are destroying retirements… is yours next? (Tim Plaehn) |
With warmer weather, and more families planning vacations, investors may want to jump into oversold hotel stocks.
According to IPX 1031, “As Americans enter 2025, travel remains a top priority. Our 2025 travel outlook report finds 92% of Americans are planning to hit the road or take to the skies this year. More than half of people across the country are eager to travel more than they did in 2024.”
That being said, hotel stocks could be standout winners.
Look at Marriott International (SYM: MAR).
After diving from about $305 to a recent low of $230, it’s attempting to pivot higher. It’s also over-extended on RSI, MACD and Williams’ %R. Plus, it has a history of running higher during the warmer travel months of the year. Even better, the company just declared a 63-cent dividend, which is payable on March 31 to shareholders of record as of February 27.
Earnings weren’t too shabby either.
According to Anthony Capuano, President and Chief Executive Officer, “Marriott achieved excellent results in 2024, as we delivered best-in-class experiences that helped drive strong demand for our industry-leading portfolio of brands. Full year global RevPAR rose 4.3 percent and, with record gross room additions of over 123,000, net rooms grew 6.8 percent to over 1.7 million rooms worldwide at year-end.
“In the fourth quarter, worldwide RevPAR [revenue per available room] rose 5 percent, driven by gains in both ADR and occupancy. International RevPAR increased by more than 7 percent, with APEC and EMEA leading the way and benefiting from strong leisure demand. RevPAR in the U.S. & Canada rose more than 4 percent, the region’s highest RevPAR increase of the year, with all customer segments growing versus the prior-year quarter.
Hyatt Hotels (SYM: H)
Oversold shares of Hyatt plunged from about $167.50 to a recent low of about $120. It’s also over-extended on RSI, MACD and Williams’ %R.
Helping, analysts at Evercore ISI just upgraded the Hyatt stock to outperform, noting that the stock pullback is greatly overdone.
“In our view, recent pullback vs. peers has in part been driven by the complexity of another >$2b asset sell-down program. However, we have become more comfortable with the idea that the Playa owned assets might not sit in Hyatt’s hands for very long, as the company has received indications of interest for the purchase of Playa’s owned real estate portfolio upon a successful acquisition of the company,” said the firm, as quoted by Seeking Alpha.
Continue Reading: Seven unknown AI stocks that could DOMINATE the next six years.
