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

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 higher today making it today's featured leisure winner. The industry as a whole closed the day up 1.2%. By the end of trading, Starwood Hotels & Resorts Worldwide rose $1.34 (2.2%) to $62.83 on light volume. Throughout the day, 1,420,831 shares of Starwood Hotels & Resorts Worldwide exchanged hands as compared to its average daily volume of 2,081,300 shares. The stock ranged in a price between $62.09-$63.10 after having opened the day at $62.24 as compared to the previous trading day's close of $61.49. Other companies within the Leisure industry that increased today were: PokerTek ( PTEK), up 8.1%, Asia Entertainment & Resources ( AERL), up 6.7%, Caesars Entertainment ( CZR), up 5.1% and Carnival Corporation ( CCL), up 5.0%.
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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, resorts, residences, retreats, select-service hotels, and extended stay hotels under the St. Starwood Hotels & Resorts Worldwide has a market cap of $12.2 billion and is part of the services sector. The company has a P/E ratio of 25.3, above the S&P 500 P/E ratio of 17.7. Shares are up 7.2% year to date as of the close of trading on Monday. Currently there are 15 analysts that rate Starwood Hotels & Resorts Worldwide a buy, no analysts rate it a sell, and 8 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 solid stock price performance, increase in net income, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, SeaWorld Entertainment ( SEAS), down 3.0%, Chuy's Holdings ( CHUY), down 2.5%, Ark Restaurants ( ARKR), down 1.9% and Diversified Restaurant Holdings ( BAGR), down 1.8%.

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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