Hyatt Hotels (H) Surges 4.1%: Is This an Indication of Further Gains?

Hyatt Hotels (H) shares ended the last trading session 4.1% higher at $145.39. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 7% gain over the past four weeks.

Hyatt’s recent stock rally reflects likely investor optimism around its asset-light strategy and luxury-led portfolio growth. The introduction of the Hyatt Select brand and momentum in upper midscale expansion signal deeper market penetration, while progress on $2 billion in asset sales, including the Playa deal, bolsters capital flexibility. Together, these moves are boosting confidence in sustained performance.

This hotel operator is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents a year-over-year change of -59.5%. Revenues are expected to be $1.74 billion, up 1.9% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Hyatt Hotels, the consensus EPS estimate for the quarter has been revised 2.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on H going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Hyatt Hotels belongs to the Zacks Hotels and Motels industry. Another stock from the same industry, Civeo (CVEO), closed the last trading session 0.3% higher at $23.15. Over the past month, CVEO has returned 6.8%.

Civeo's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.08. Compared to the company's year-ago EPS, this represents a change of -85.7%. Civeo currently boasts a Zacks Rank of #2 (Buy).

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This article originally published on Zacks Investment Research (zacks.com).

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