This week’s Momentum Trader Alert recommendation is a bet on growing hotel industry profits as more Americans are hitting the road for the holidays.
Last week, almost 51 million Americans traveled 50 miles or more over the Thanksgiving holidays. That’s the highest number since 2005. This increase of over 3.3% also bodes well for the coming Christmas travel season.
Headquartered in McLean, Virginia, Hilton Worldwide Holdings Inc. (HLT) is one of the world’s best-known hotel and resort operators. Its brands include Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Hilton Hotels & Resorts, DoubleTree by Hilton and Embassy Suites Hotels.
As you see on the chart below, Hilton Worldwide’s stock has broken out to the upside in the past three months, driven by Hilton’s projected growth rate of an industry-trouncing 18.6%.
Hilton Worldwide Holdings Inc. (HLT) versus the S&P 500 over the last three months.
Momentum Trader Alert Analysis
Recommendation
Buy Hilton Worldwide Holdings Inc. (HLT) at market today and place your stop at $70.25.
If you want to play the options, I recommend the HLT April $75 calls (HLT180420C00075000), which last traded at $3.70 and expire on April 20.
Portfolio Update
This week, I am recommending that you sell your position in longtime holding AON plc (AON) at a small gain of 1.19%, as this position has run out of steam.
Sincerely,
Nicholas A. Vardy
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