There’s No Leisure in These 6 Stocks

by Louis Navellier | February 15, 2012 8:30 am

Looking for a great place to spend a romantic evening? I’ve got a few companies on my list that will satisfy that desire. Looking for a a few stocks to get rid of? Do a double take and come right back to those same stocks, because, as it turns out, some of the major player in the hotel and leisure industry haven’t been doing so well over the past year. And, despite some companies’ recent success, investors should be wary of their fundamentals.

I watch more than 5,000 publicly traded companies with my Portfolio Grader[1] tool, ranking companies by a number of fundamental and quantitative measures. And this week, I’ve got six hotel and leisure stocks that could use a break.

Here they are, in alphabetical order. Each one of these stocks gets a “D” or “F” according to my research.

Carnival Corp. (NYSE:CCL[2]) is one of the most famous cruise companies in the world — a cruise company marred by the recent Costa Concordia disaster. Despite its brand equity, CCL stock has dipped 35% in the past year. CCL stock gets a “D” for operating margin growth, a “D” for earnings growth, a “D” for earnings momentum, an “F” for the magnitude in which earnings projections have increased over the past month and a “D” for cash flow in my Portfolio Grader tool. For more information, view my complete analysis of CCL stock[3].

Ctrip (NASDAQ:CTRP[4]) provides hotel accommodations, airline tickets and packaged tours in China. In the last 12 months, CTRP is down almost 41%. CTRP stock gets a quantitative grade of “F” in my Portfolio Grader tool. For more information, view my complete analysis of CTRP stock[5].

Hyatt Hotels (NYSE:H[6]) manages, franchises, owns and develops Hyatt-branded hotels and resort facilities. H stock has posted a loss of 12% in the past year. While it may be true Hyatt has been gaining considerable ground so far in 2012 (up 15%) H stock gets poor fundamental grades. For example, H stock gets a “D” for sales growth, a “D” for earnings growth, an “F” for earnings momentum, a “D” for cash flow and a “D” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of H stock[7].

International Game Technology (NYSE:IGT[8]) designs, develops, manufactures, and markets electronic gaming equipment. Investors have watched its stock decline 12% in the past 12 months. IGT stock gets a “D” for sales growth, a “D” for earnings growth, a “D” for earnings momentum, an “F” for its ability to exceed the consensus earnings estimates on Wall Street and a “D” for the magnitude in which earnings projections have increased over the past month in my Portfolio Grader tool. For more information, view my complete analysis of IGT stock[9].

Marriott (NYSE:MAR[10]) is a global operator and franchisor of hotels that has experienced a loss of 14% since last February. Like Hyatt, Marriott is a hotel franchisor on the upswing. However, like Hyatt, they also have their fair share of problems. MAR stock gets an “F” for operating margin growth, an “F” for earnings growth, an “F” for earnings momentum and a “D” for cash flow in my Portfolio Grader tool. For more information, view my complete analysis of MAR stock[11].

Royal Caribbean Cruises (NYSE:RCL[12]) is another major cruise company whose stock is experiencing low tides. In the last year, RCL stock is down 36%, compared to gains by the broader markets. RCL stock gets an “F” for the magnitude in which earnings projections have increased over the past month and an “F” for cash flow in my Portfolio Grader tool. For more information, view my complete analysis of RCL stock[13].

Get more analysis of these picks and other publicly traded stocks with Louis Navellier’s Portfolio Grader[14] tool, a 100% free stock rating tool that measures both quantitative buying pressure and eight fundamental factors.

Source URL: https://investorplace.com/2012/02/no-leisure-in-these-6-stocks-ccl-ctrp-h-igtl-mar-rcl/

---