Travel + Leisure Co. (TNL) Hit a 52 Week High, Can the Run Continue?

Company Performance - Travel + Leisure Co. (TNL) shares have increased by 12.8% over the past month, reaching a new 52-week high of $57.62 [1] - The company has gained 11.7% since the beginning of the year, outperforming the Zacks Consumer Discretionary sector's 2.7% and the Zacks Leisure and Recreation Services industry's 5.4% [1] Earnings and Revenue Expectations - In the last earnings report on October 23, 2024, TNL reported an EPS of$ 1.57, exceeding the consensus estimate of $1.49 [2] - For the current fiscal year, TNL is expected to post earnings of$ 6.52 per share on revenues of $3.86 billion, with a year-over-year change of 13.47% [3] - For the next fiscal year, the company is projected to earn$ 8.48 per share on revenues of $4.03 billion, representing a year-over-year change of 4.41% [3] Valuation Metrics - TNL currently trades at 8.6X current fiscal year EPS estimates, below the peer industry average of 19.9X [7] - On a trailing cash flow basis, TNL trades at 7.6X compared to the peer group's average of 12.1X [7] - The stock has a PEG ratio of 0.65, indicating it is not in the top echelon of stocks from a value perspective [7] Zacks Rank and Style Scores - TNL has a Zacks Rank of 2 (Buy) due to rising earnings estimates, making it a suitable choice for investors [8] - The company has a Value Score of A, while its Growth and Momentum Scores are D and D, respectively, resulting in a VGM Score of B [6] Industry Comparison - The Leisure and Recreation Services industry is in the top 32% of all industries, indicating favorable conditions for TNL and its peers [11] - Royal Caribbean Cruises Ltd. (RCL), a peer, has a Zacks Rank of 2 (Buy) and has shown strong earnings performance, with a projected EPS of$ 14.74 on revenues of $17.98 billion for the current fiscal year [9][10]