Profiting from the Holiday Travel Boom

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

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world. He was the Editor of The Global Guru, a free weekly e-newsletter, and also edited the trading services Momentum Trader Alert, which focused on making short-term profits in the hottest markets in the world, and The Alpha Algorithm, which was designed specifically to deliver big, fast triple-digit winners, month after month. He was also the editor of Smart Money Masters, a monthly service focused on longer term investments recommended by the brightest minds in the business. Mr. Vardy has been a regular commentator on CNN International and the Fox Business Network. He has also published articles in The New Republic, The World and I, and The Baker & McKenzie Legal Review. The Global Guru/Nicholas Vardy has been cited in The Wall Street Journal, Newsweek, Fox Business News, CBS MarketWatch, Yahoo! Finance, and MSN Money Central. Mr. Vardy graduated from Stanford with a B.A. — with honors and distinction — in both Economics and History, and he also earned an M.A in Modern European Intellectual History. After winning a Fulbright Scholarship, he earned a J.D. degree at Harvard Law School where he was an editor of the Harvard International Law Journal. When not uncovering investment opportunities for his subscribers and investors, Mr. Vardy is a keep-fit enthusiast and an avid student of classical music.  

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