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%.
The RSI Indicator for HTHT moved out of oversold territory on July 11, 2024. 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 24 similar instances when the indicator left oversold territory. In of the 24 cases the stock moved higher. This puts the odds of a move higher at .
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
an economy hotel chain
Industry HotelsResortsCruiselines