Stock Analysis
- United States
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- Hotel and Resort REITs
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- NasdaqGS:HST
A Look At Host Hotels & Resorts' (NASDAQ:HST) Share Price Returns
Host Hotels & Resorts, Inc. (NASDAQ:HST) shareholders will doubtless be very grateful to see the share price up 35% in the last quarter. But that cannot eclipse the less-than-impressive returns over the last three years. After all, the share price is down 25% in the last three years, significantly under-performing the market.
Check out our latest analysis for Host Hotels & Resorts
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
Host Hotels & Resorts saw its share price decline over the three years in which its EPS also dropped, falling to a loss. Due to the loss, it's not easy to use EPS as a reliable guide to the business. But it's safe to say we'd generally expect the share price to be lower as a result!
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
It might be well worthwhile taking a look at our free report on Host Hotels & Resorts' earnings, revenue and cash flow.
What about the Total Shareholder Return (TSR)?
We'd be remiss not to mention the difference between Host Hotels & Resorts' total shareholder return (TSR) and its share price return. Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Dividends have been really beneficial for Host Hotels & Resorts shareholders, and that cash payout explains why its total shareholder loss of 16%, over the last 3 years, isn't as bad as the share price return.
A Different Perspective
While the broader market gained around 26% in the last year, Host Hotels & Resorts shareholders lost 15%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 5%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Host Hotels & Resorts better, we need to consider many other factors. For example, we've discovered 3 warning signs for Host Hotels & Resorts (1 is significant!) that you should be aware of before investing here.
But note: Host Hotels & Resorts may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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What are the risks and opportunities for Host Hotels & Resorts?
Host Hotels & Resorts, Inc. is an S&P 500 company and is the largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels.
Rewards
Trading at 35.6% below our estimate of its fair value
Earnings are forecast to grow 3.16% per year
Risks
Has a high level of debt
Further research on
Host Hotels & Resorts
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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About NasdaqGS:HST
Host Hotels & Resorts
Host Hotels & Resorts, Inc. is an S&P 500 company and is the largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels.
Undervalued average dividend payer.
