Hyatt Inc. is scheduled to report earnings before Thursday’s open. The stock hit a record high of $125.07/share in 2023 and is currently trading near $118/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview:
The company is expected to report a gain of $0.47/share on $1.58 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $0.61/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals:
The company lost money in 2020 and 2021 due to the pandemic. The company earned $3.28/share in 2022 and is expected to earn $2.76 in 2023 and $3.52 in 2024. If that happens earnings will grow by 24% in 2024 compared to 2023.
A Closer Look At The Technicals:
Technically, the stock has been acting great over the last two years even as the broader market entered a bear market. More recently, the company is tracing out a bullish cup-with-handle pattern which could set the stage for another leg higher. The stock is trading near a record high and that is bullish considering the broader macro backdrop. The bulls want to see the stock gap higher after earnings are released and the bears want to see it fall.
Pay Attention To How The Stock Reacts To The News:
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclaimer: The stock has been featured in my FindLeadingStocks.com weekly stock market report.
Read the full article here
