JThe increase in the vaccinated population and the reduction in travel restrictions are expected to increase the demand for hotel reservations.
However, high inflation, war in Europe and rising interest rates will continue to impact consumer spending.
In such a scenario, the need for the insightful tools of TipRanks seems fitting for investors. Use of SEMrush Holdings Data (SEMR), the world’s largest website usage monitoring service, TipRanks’ website traffic tool provides visibility into estimated consumer visits to company websites and its relationship to stock price.
Let’s look at three stocks with rising website trends and strong prospects.
Wynn Resorts, Limited (NASDAQ: WYNN)
Wynn Resorts is a publicly traded hospitality and gaming company. It focuses on the development of high-end hotels and casinos.
Thrusted by the pandemic and its subsequent measures, Wynn Resorts’ finances have come under severe strain. Nonetheless, a rebound in travel due to the easing of COVID-related travel restrictions, particularly in China, reflects high customer demand.
On TipRanks, we could also notice an upward trend in website traffic on the website traffic tool. In April and May, the total number of visits to wynnresorts.com showed an upward trend, globally, representing year-over-year jumps of 4% and 52.86%., respectively. In addition, the website’s year-to-date growth, compared to the website’s year-to-date growth, was 69.76%.
This, in turn, indicates that the company could post strong results in the second quarter.
In May, Wynn Resorts reported a 29.4% increase in first-quarter operating revenue, while real estate adjusted EBITDA more than tripled.
Recently, the Deutsche Bank analyst Carlo Santarelli maintained a Buy rating and price target of $92 on Wynn Resorts. Santarelli’s price target implies upside potential of 54.6% over the next 12 months.
Overall, the rest of the street is cautiously bullish on the stock, with a moderate buy consensus rating based on an even split between buys and holds. Wynn Resorts’ average price target of $85.69 implies 43.99% upside potential. The shares have gained more than 51% over the past year.
Huazhu Group Limited (NASDAQ:HTHT)
With a market capitalization of $11.78 billion globally, Huazhu Group was ranked the 7th largest hotel group in 2021. The Chinese hotel management company operates 7,988 properties in 16 countries as of March 31, 2022.
The company posted strong results in the first quarter of 2022 thanks to a recovery in leisure travel and business travel. Meanwhile, since late March 2022, businesses in China are experiencing a slowdown due to the resurgence of COVID with the Omicron variant. This was followed by strict lockdowns in major cities.
Nevertheless, Huazhu Group’s management tried to overcome the situation through cost control measures and other strategic initiatives.
Jin Hui, CEO of Huazhu, said, “Despite the short-term challenges, our long-term strategy of ‘sustainable quality growth’ remains intact. In the long term, we will continuously focus on customers, franchisees and employees to strengthen our ability to weather the ups and downs of the long-term business cycle. »
We have noticed an upward trend in website clicks on the online traffic tool. In May 2022, the total number of visits to huazhu.com showed an upward trend, globally, representing an increase of 18.47% compared to April. Additionally, year-to-date website growth, compared to year-to-date website growth, was 3.98%.
Following the company’s first quarter results, analyst Benchmark Co. Jiang Fauna maintained a bullish position on HTHT but lowered the price target to $40 (upside potential of 4.28%) from $50.
The consensus among analysts is a strong buy based on 3 unanimous buys. Huazhu Group’s average price target of $47.73 implies upside potential of 24.43% from current levels. However, the shares have lost 27.43% over the past year.
Hilton Worldwide Holdings Inc. (NYSE: HLT)
Hilton, a popular global hotel company, offers a broad portfolio of 18 well-known brands, including approximately 6,900 properties and more than one million rooms in 122 countries. As of March 31, the company had 740 managed hotels, 54 owned properties and 6,098 franchised hotels.
In the current market scenario, with a market cap of $32.57 billion, the company just lost about 3% in the past year. This reflects Hilton’s resilient business model and strong fundamentals.
Last quarter, the company reported strong results reflecting an 80.5% year-over-year increase in comparable RevPAR (revenue per available room) systemwide driven by high occupancy and ‘ADR (Average Daily Rate). Management is optimistic about the industry’s strong recovery and has provided a strong outlook for the period ahead.
An upward trend in website clicks can be seen on the TipRanks tool. In April and May, total visits to hilton.com trended upward, globally, representing a 56.29% and 35.7% year-over-year increase , respectively, indicating strong results to report. Additionally, year-to-date website growth, compared to year-to-date website growth, was 24.9%. Also, compared to the first quarter, website traffic has increased by 22.04% in the second quarter so far, indicating optimism.
Recently, Barclays analyst Brandt Montour launched a hedge of Hilton with a Hold rating and a price target of $125 (upside potential of 8.43%).
Consistent with Montour’s position, the consensus among analysts currently translates to a Hold rating, based on two Buys and eight Holds. The expected average Hilton price of $149.6 implies upside potential of 29.77% from current levels.
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A strong rebound in travel demand and upward trends in website traffic point to optimism for these companies. However, the current uncertain macroeconomic environment remains a concern.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.