Hospitality Properties (NYSE: HPT) shares currently have a dividend yield of 6.90%. Hospitality Properties Trust, a real estate investment trust (REIT), engages in buying, owning, and leasing hotels. The company has a P/E ratio of 32.57. Currently there is 1 analyst that rates Hospitality Properties a buy, 1 analyst rates it a sell, and 3 rate it a hold. The average volume for Hospitality Properties has been 1,339,600 shares per day over the past 30 days. Hospitality Properties has a market cap of $3.4 billion and is part of the real estate industry. Shares are up 16.1% year to date as of the close of trading on Friday. TheStreet Ratings rates Hospitality Properties as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 16.4%. Since the same quarter one year prior, revenues slightly increased by 9.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- HOSPITALITY PROPERTIES TRUST's earnings per share declined by 40.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, HOSPITALITY PROPERTIES TRUST reported lower earnings of $0.84 versus $1.30 in the prior year. This year, the market expects an improvement in earnings ($0.87 versus $0.84).
- In its most recent trading session, HPT has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The gross profit margin for HOSPITALITY PROPERTIES TRUST is rather low; currently it is at 20.60%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 8.25% significantly trails the industry average.
- You can view the full Hospitality Properties Ratings Report.
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