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Stock Analyst Update

Hilton Stock Has Room to Grow

Improving fundamentals, low valuation make hotel firm's shares a sound holding.

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After declining 21% over the past three years, Hilton Hotels (HLT) is a value stock with limited downside risk and a lot of upside potential.

It trades at 15 times cash flow, a substantial discount to the benchmark S&P 500 index's multiple of 27, and well below its own three-year average of 19. Its solid second quarter, reported Thursday, and continuing improvements make Hilton an attractive value.

Richard Wilson has a position in the following securities mentioned above: HLT. Find out about Morningstar’s editorial policies.