Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

Hilton Worldwide Holdings

(

HLT

) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Hilton Worldwide Holdings as such a stock due to the following factors:

  • HLT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $203.2 million.
  • HLT traded 315,033 shares today in the pre-market hours as of 9:27 AM.
  • HLT is up 2.9% today from yesterday's close.

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More details on HLT:

Hilton Worldwide Holdings Inc., a hospitality company, owns, leases, manages, develops, and franchises hotels, resorts, and timeshare properties worldwide. HLT has a PE ratio of 38. Currently there are 12 analysts that rate Hilton Worldwide Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Hilton Worldwide Holdings has been 8.9 million shares per day over the past 30 days. Hilton Worldwide has a market cap of $26.5 billion and is part of the services sector and leisure industry. Shares are up 1.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Hilton Worldwide Holdings as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 5.0%. Since the same quarter one year prior, revenues slightly increased by 10.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • HILTON WORLDWIDE HOLDINGS has improved earnings per share by 25.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, HILTON WORLDWIDE HOLDINGS increased its bottom line by earning $0.68 versus $0.22 in the prior year. This year, the market expects an improvement in earnings ($0.81 versus $0.68).
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry, implying reduced upside potential.
  • The gross profit margin for HILTON WORLDWIDE HOLDINGS is rather low; currently it is at 24.89%. Regardless of HLT's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 5.77% trails the industry average.
  • The debt-to-equity ratio is very high at 2.45 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, HLT maintains a poor quick ratio of 0.81, which illustrates the inability to avoid short-term cash problems.

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