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 69 cents (-1.1%) to $59.22 on average volume. Throughout the day, 1.7 million shares of Starwood Hotels & Resorts Worldwide exchanged hands as compared to its average daily volume of 1.9 million shares. The stock ranged in price between $58.94-$59.77 after having opened the day at $59.62 as compared to the previous trading day's close of $59.91. Other companies within the Leisure industry that declined today were: Marriott Vacations Worldwide ( VAC), down 11.7%, Asia Entertainment & Resources ( AERL), down 5.2%, Chanticleer Holdings ( HOTR), down 5%, and Kona Grill ( KONA), down 4.7%.
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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 $12.04 billion and is part of the services sector. The company has a P/E ratio of 25.7, above the S&P 500 P/E ratio of 17.7. Shares are up 7.1% year to date as of the close of trading on Wednesday. Currently there are 14 analysts that rate Starwood Hotels & Resorts Worldwide a buy, no analysts rate it a sell, and eight 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, reasonable valuation levels, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Orbitz Worldwide ( OWW), up 14%, Jack In The Box ( JACK), up 5.1%, Nevada Gold & Casinos ( UWN), up 4.5%, and Monarch Casino & Resort ( MCRI), up 3.8%, were all gainers within the leisure industry with Expedia ( EXPE) 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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