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Playa Hotels & Resorts (PLYA) Outpaces Stock Market Gains: What You Should Know

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Playa Hotels & Resorts (PLYA - Free Report) closed at $9.51 in the latest trading session, marking a +1.28% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.33%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.92%.

Coming into today, shares of the developer and operator of all-inclusive resorts had gained 8.55% in the past month. In that same time, the Consumer Discretionary sector gained 5.57%, while the S&P 500 gained 5.67%.

Playa Hotels & Resorts will be looking to display strength as it nears its next earnings release, which is expected to be May 4, 2023. The company is expected to report EPS of $0.30, up 57.89% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $249.27 million, up 13.53% from the year-ago period.

PLYA's full-year Zacks Consensus Estimates are calling for earnings of $0.56 per share and revenue of $913.64 million. These results would represent year-over-year changes of +12% and +6.7%, respectively.

Investors should also note any recent changes to analyst estimates for Playa Hotels & Resorts. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Playa Hotels & Resorts is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, Playa Hotels & Resorts is holding a Forward P/E ratio of 16.77. Its industry sports an average Forward P/E of 21.02, so we one might conclude that Playa Hotels & Resorts is trading at a discount comparatively.

The Hotels and Motels industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 36, putting it in the top 15% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow PLYA in the coming trading sessions, be sure to utilize Zacks.com.


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