Starwood Hotels & Resorts Worldwide Inc (HOT): Today's Featured Leisure Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Starwood Hotels & Resorts Worldwide ( HOT) pushed the Leisure industry lower today making it today's featured Leisure laggard. The industry as a whole closed the day down 0.4%. By the end of trading, Starwood Hotels & Resorts Worldwide fell 74 cents (-1.2%) to $59.64 on light volume. Throughout the day, 1.7 million shares of Starwood Hotels & Resorts Worldwide exchanged hands as compared to its average daily volume of 2.3 million shares. The stock ranged in price between $59.55-$60.32 after having opened the day at $59.95 as compared to the previous trading day's close of $60.38. Other companies within the Leisure industry that declined today were: PokerTek ( PTEK), down 16.9%, Multimedia Games ( MGAM), down 5.7%, Del Frisco's Restaurant Group ( DFRG), down 3.4%, and Isle of Capri Casinos ( ISLE), down 3.3%.
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Starwood Hotels & Resorts Worldwide Inc. operates as a hotel and leisure company worldwide. The company operates luxury and upscale full service hotels, select-service hotels, extended stay hotels, resorts, retreats, and residences under St. Starwood Hotels & Resorts Worldwide has a market cap of $11.68 billion and is part of the services sector. The company has a P/E ratio of 20.8, above the S&P 500 P/E ratio of 17.7. Shares are up 3.9% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate Starwood Hotels & Resorts Worldwide a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates Starwood Hotels & Resorts Worldwide as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, reasonable valuation levels, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Cosi ( COSI), up 6.3%, Melco Crown Entertainment ( MPEL), up 5.8%, MakeMyTrip ( MMYT), up 2.7%, and Orbitz Worldwide ( OWW), up 2.6%, were all gainers within the leisure industry with McDonald's Corporation ( MCD) being today's featured leisure industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the leisure industry could consider PowerShares Dynamic Leisure&Entert ( PEJ) while those bearish on the leisure industry could consider ProShares Ultra Sht Consumer Services ( SCC).

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