Hotel Stocks Hit Highs: Time to Sell?
BOSTON (TheStreet) -- U.S. stocks were mixed Friday. These hotel stocks hit 52-week highs, but their share prices are getting rich.
3. Starwood Hotels & Resorts
(HOT)
rose 2.7% to $46.21, hitting a high of $46.28.
Quarter
: Starwood swung to a fourth-quarter loss of $107 million, or $1.03 a share, from a profit of $79 million, but a loss of of 25 cents, a year earlier. Revenue declined 3.8%. Starwood holds $134 million of cash and $3 billion of debt.
Stock
: Starwood has more than tripled during the past year, outperforming U.S. indices. The stock trades at a price-to-projected-earnings ratio of 45 and a price-to-cash-flow ratio of 15, reflecting 55% and 16% premiums to industry averages.
Consensus
: Of analysts covering Starwood, nine advise purchasing its shares, ten recommend holding and two suggest selling them.
Goldman Sachs
(GS) - Get Report
expects the stock to advance 15% to $53.
Citigroup
(C) - Get Report
projects the shares will hit $50.
2. Wynn Resorts
(WYNN) - Get Report
climbed 3% to $76.63, achieving a high of $77.95.
Quarter
: Wynn's fourth-quarter loss narrowed 97% to $5.2 million, or 4 cents, as revenue increased 32% to $809 million. The operating margin expanded from 0.2% to 7.8%. Wynn has $2 billion of cash and $3.6 billion of debt.
Stock
: Wynn has more than tripled in the past year, beating major benchmarks. The stock sells for a price-to-projected-earnings ratio of 74 and a price-to-cash-flow ratio of 15, 159% and 22% premiums to industry averages.
Consensus
: Of researchers evaluating Wynn, eight rate its stock "buy", seven rate it "hold" and four rate it "sell."
BMO Capital Markets
projects an $89 price, implying a potential 16% gain.
Bank of America
(BAC) - Get Report
expects the stock to hit $85.
1. Marriott International
(MAR) - Get Report
climbed 3.1% to $31.09, recording a high of $31.24.
Quarter
: Marriott swung to a fourth-quarter profit of $106 million, or 28 cents, from a loss of $10 million, or 3 cents, a year earlier. Revenue dropped 12%. The operating margin rose to 6.8%. Marriott holds $169 million of cash and $2.3 billion of debt.
Stock
: Marriott has increased 73% in the past year, outpacing U.S. indices. The stock trades at a price-to-book ratio of 9.5, a 69% premium to the industry average. It's fairly valued when comparing projected earnings, sales and cash flow.
Consensus
: Of firms rating Marriott, 10 advocate purchasing its shares, 10 recommend holding and two say to sell them.
JPMorgan Chase
(JPM) - Get Report
expects the stock to increase 16% to $36.
Keefe, Bruyette & Woods
believes it will hit $34.
