Stock Analysis & Ideas

Website Traffic Hints at Rising Trends for These 3 Hospitality Stocks

Story Highlights

In the current uncertain macroeconomic environment, when investors seem hesitant about making investment decisions, TipRanks’ Website Traffic Tool can be helpful.

The rising vaccinated population and curtailment of travel restrictions are expected to increase the demand for hotel reservations. 

However, high inflation, the war in Europe, and rising interest rates will continue to impact consumer spending.

Under such a scenario, the need for TipRanks’ insightful tools seems appropriate for investors. Using data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, TipRanks’ Website Traffic Tool provides visibility to an estimate of consumers’ visits to the company’s websites and its relation with the 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 company in the hospitality and gaming sector. It is focused on developing high-end hotels and casinos. 

Thwarted by the pandemic and its subsequent measures, Wynn Resorts’ financials came under pressure to a large extent. Nevertheless, a rebound in travel due to the easing of COVID-related travel restrictions, particularly in China, is reflecting elevated customer demand. 

On TipRanks, we could also notice a website traffic uptrend on the website traffic tool. In April and May, total visits to wynnresorts.com showed an increasing trend, on a global basis, representing 4% and 52.86% jumps on a year-over-year basis, respectively. Also, year-to-date website growth, compared to year-to-date website growth in the previous year, came in at a whopping 69.76%. 

This, in turn, indicates that the company might report strong results in the second quarter. 

In May, Wynn Resorts reported a 29.4% rise in first-quarter operating revenues, while adjusted property EBITDA more than tripled.

Recently, Deutsche Bank analyst Carlo Santarelli maintained a Buy rating and a price target of $92 on Wynn Resorts. Santarelli’s price target implies 54.6% upside potential over the next 12 months. 

Overall, the rest of the Street is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on an even split between the Buys and the Holds. The average Wynn Resorts price target of $85.69 implies 43.99% upside potential. 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 recorded strong first-quarter 2022 results on the back of a recovery in leisure trips and corporate travel. Meanwhile, since the end of March 2022, businesses in China have experienced a downturn 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 weather the situation through cost-control measures and other strategic initiatives. 

Jin Hui, the CEO of Huazhu, commented, “Despite the near-term challenges, our long-term ‘Sustainable Quality Growth’ strategy remains intact. In the long run, we will continuously center on customers, franchisees, and employees for building our capability to ride through the ups and downs of the economic cycle in the long run.” 

We noticed an upward trend in website clicks on the online traffic tool. In May 2022, total visits on huazhu.com showed an increasing trend, on a global basis, representing a surge of 18.47% from April. Also, year-to-date website growth, compared to year-to-date website growth in the previous year, came in at 3.98%. 

Following the company’s Q1 results, Benchmark Co. analyst Fawne Jiang maintained a bullish stance on HTHT but lowered the price target to $40 (4.28% upside potential) from $50. 

Consensus among analysts is a Strong Buy based on 3 unanimous Buys. The average Huazhu Group price target of $47.73 implies 24.43% upside potential from current levels. However, shares have lost 27.43% over the past year. 

Hilton Worldwide Holdings Inc. (NYSE: HLT

Hilton, a popular global hospitality company, offers a broad portfolio of 18 well-known brands, including around 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 capitalization of $32.57 billion, the company has just lost around 3% over the past year. This reflects Hilton’s resilient business model and strong fundamentals. 

Last quarter, the company reported strong results reflecting a year-over-year rise of 80.5% in system-wide comparable RevPAR (revenue per available room) on the back of elevated occupancy and ADR (average daily rate). Management is optimistic about the strong recovery in the industry and provided a robust outlook for the upcoming period. 

An upward trend in website clicks is visible on the TipRanks tool. In April and May, total visits on hilton.com showed an increasing trend, on a global basis, representing a surge of 56.29% and 35.7% year-over-year, respectively, indicating strong results to be reported. Also, year-to-date website growth, compared to year-to-date website growth in the previous year, stood at 24.9%. Further, compared to Q1, website traffic is trending 22.04% higher in Q2 so far, which indicates optimism. 

Recently, Barclays analyst Brandt Montour initiated coverage of Hilton with a Hold rating and a price target of $125 (8.43% upside potential). 
 
In line with Montour’s stance, consensus among analysts currently results in a Hold rating, based on two Buys and eight Holds. The average Hilton price forecast of $149.6 implies 29.77% upside potential from current levels. 

Ending Words 

A strong rebound in travel demand and rising website traffic trends indicate optimism for these companies. However, the current uncertain macroeconomic environment remains a concern. 

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