This Chinese hospitality company beat analysts’ earnings estimates by $0.12 last quarter, and eight analysts have boosted their forecasts in the past 30 days.
China Lodging Group (HTHT)
From Cabot Stock of the Week
China Lodging Group (HTHT), originally recommended by Paul Goodwin of Cabot Emerging Markets Investor, reported another fantastic quarter last Thursday, which, along with great strength among Chinese stocks, has caused a rush of buying. The second quarter saw China Lodging’s sales, EBITDA and earnings rise 20%, 27% and 19%, respectively, with the earnings figure topping estimates by a mile.
Analysts have ratcheted up their earnings estimates (now looking for 47% growth this year and 37% next) in response. Handling the stock here is a bit tricky, as HTHT is out of trend on the upside, but showing excellent power, too. We’ll stay on Buy, but any new buys should be kept small or wait for a calm consolidation of a week or two. BUY.
Timothy Lutts, Cabot Stock of the Week, www.cabotwealth.com, 978-745-5532, August 22, 2017