Hilton Stock Has Room to Grow
Improving fundamentals, low valuation make hotel firm's shares a sound holding.
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.