Host Hotels & Resorts Inc.
) scaled a new 52-week high of $23.19 during the trading session on
Tuesday, Jul 22. The closing price of $23.09 of this Zacks Rank #2
(Buy) stock represents a robust year-to-date return of over 21%.
The average trading volume for the session was about 6.9 million
Despite hitting its 52-week high, this lodging real estate
investment trust (REIT) has plenty of upside left, given its solid
portfolio of premium hotels as well as improving U.S.
lodging-market fundamentals, particularly in the West Coast market.
Bethesda, MD-based Host Hotels, boasting a sturdy portfolio of
luxury and upscale hotels, is well poised to deliver better results
in the quarters ahead given the improving market fundamentals.
Particularly, in terms of Revenue Per Available Room (RevPAR), the
west coast properties continued to experience sound results in the
first quarter, driven by persistent business mix shift from
contract to higher-rated transient and group business. Going
forward, we expect the West Coast market to continue outperforming
for the rest of the year on strong lodging demand and lower
supplies. Hence, it remains a lucrative choice for the company.
Moreover, Host Hotels's strategic portfolio-restructuring
activities bode well for its long-term growth. Also, dividend hike
for the 14th consecutive time boosted investors' confidence in the
stock. Its first-quarter 2014 adjusted funds from operations (FFO)
per share exceeded the Zacks Consensus Estimate and the year-ago
quarter figure backed by a rise in comparable hotel RevPAR, and
food and beverage operations. We anticipate a continuation of this
Echoing similar sentiments, over the last 30 days three estimates
moved up for both 2014 and 2015 FFO per share and there were no
negative revisions. The Zacks Consensus Estimate for 2014 and 2015
FFO per share presently stands at $1.45 and $1.61 per share,
Further, Host Hotels is scheduled to release second-quarter
earnings on Jul 31, before the opening bell. The Zacks Consensus
Estimate for FFO per share is currently pegged at 43 cents.
The company's Earnings ESP, which represents the difference between
the Most Accurate estimate and the Zacks Consensus Estimate, is
+2.33%. This, along with a Zacks Rank #2, conclusively projects
Host Hotels' chance to beat the Zacks Consensus Estimate.
Notably, Host Hotels has an average earnings surprise of 4.94%,
beating the Zacks Consensus Estimate in three out of the last four
Other Stocks Scaling Highs
Apart from Host Hotels, other REITs that have reached 52-week highs
on Jul 22 include
Cousins Properties Inc.
Duke Realty Corp.
Essex Property Trust Inc.
Funds from operations, a widely accepted and reported measure
of REITs performance, are derived by adding depreciation,
amortization and other non-cash expenses to net income.
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