Chinese hotel operator Huazhu Group reports earnings, gets a bullish signal
Huazhu Group (Nasdaq: HTHT) is one of the largest hotel operators in mainland China. The stock rose astronomically from early 2016 through the high in mid-2018. The stock moved from under $7 a share back in the first quarter of ’16 to a high over $49 in June ’18.
After reaching the all-time high in June, the stock fell to the $25 level in October. The stock did bottom in October and started rising again and gained over 80% from the low. The stock has fallen again in recent weeks, and it just reported earnings on May 22.
The earnings showed a slight miss on the EPS side, but a slight beat on the revenue side. The initial indication was for a small dip in the stock price. How big of a decline could be critical for the stock as it has the support of its 104-week moving average and the lower rail of a trend channel just below the current price?
The Tickeron AI Trend Prediction Engine generated a bullish signal for Huazhu Group on May 21. The signal calls for a gain of at least 4% in the next month and it showed a confidence level of 61%. Past predictions on the stock have been successful 79% of the time.
Huazhu Group has shown solid earnings and revenue growth in recent years. The EPS have grown at a rate of 40% per year for the last three years while revenue grew at a rate of 20%. Revenue grew by 14% in the most recent quarter while the EPS declined on a year over year basis.
The company does have solid management efficiency ratings with a return on equity of 27.7% and a profit margin of 23.8%.
HTHT's RSI Indicator climbs out of oversold territory
The RSI Oscillator for HTHT moved out of oversold territory on June 16, 2025. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 27 similar instances when the indicator left oversold territory. In of the 27 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 66 cases where HTHT's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for HTHT just turned positive on June 27, 2025. Looking at past instances where HTHT's MACD turned positive, the stock continued to rise in of 52 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where HTHT advanced for three days, in of 290 cases, the price rose further within the following month. The odds of a continued upward trend are .
HTHT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on June 06, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on HTHT as a result. In of 99 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
HTHT moved below its 50-day moving average on June 11, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for HTHT crossed bearishly below the 50-day moving average on June 13, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HTHT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for HTHT entered a downward trend on June 27, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.177) is normal, around the industry mean (30.451). HTHT has a moderately high P/E Ratio (81.837) as compared to the industry average of (31.992). HTHT's Projected Growth (PEG Ratio) (0.000) is very low in comparison to the industry average of (1.378). Dividend Yield (0.016) settles around the average of (0.023) among similar stocks. HTHT's P/S Ratio (5.045) is slightly higher than the industry average of (2.508).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. HTHT’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. HTHT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 70, placing this stock worse than average.
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General Information
an economy hotel chain
Industry HotelsResortsCruiselines
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