Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Wyndham Hotels (WH) , which belongs to the Zacks Hotels and Motels industry, could be a great candidate to consider.This hotel and resort chain has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 8.74%.For the last reported quar ...

Key Takeaways Marriott posted ~4.3% net room growth in 2025, adding 700 properties and nearly 100,000 rooms worldwide.MAR ended 2025 with a 610,000-room pipeline, up 5.7% year over year, driven by strong global deal activity.Marriott expanded its portfolio with citizenM, midscale brand growth and record luxury deal signings in 2025.Marriott International, Inc. (MAR) has shared key highlights from a highly successful 2025 ahead of its fourth-quarter and full-year results. The company delivered broad-based ex ...

Core Insights - Choice Hotels International, Inc. (CHH) is expanding its global presence in the hospitality sector with plans to open six new upscale properties under the Ascend Collection brand in Québec by early 2026, leading to a 5.3% increase in shares during trading hours following the announcement [1][9]. Expansion Initiatives - The expansion is a significant initiative post-consolidation, demonstrating the company's commitment to enhancing its upscale offerings in high-demand destinations, particularly in Montréal and key resort areas [2]. - This initiative establishes a foundation for further growth across Canada, positioning the region as a long-term growth driver and a source of revenue diversification [3]. Market Performance - The expansion is supported by strong market performance, with a 7% year-over-year increase in revenue per available room (RevPAR) in Canada during Q3 2025, and the new properties will increase the Ascend Collection's footprint in Canada by approximately 20% [4][9]. Property Portfolio - The six new properties will feature a diverse portfolio of around 650 rooms, including urban hotels with luxury amenities, family-oriented resorts, and boutique mountain resorts with extensive recreational facilities [5]. International Growth Strategy - Beyond Canada, Choice Hotels is pursuing aggressive growth in EMEA, the Caribbean, Latin America, and Asia-Pacific, with strong momentum in France, Spain, China, and Australia, aiming to double international adjusted EBITDA by 2027 [6]. - In the U.S., growth is primarily driven by brand conversions, allowing for capital-efficient expansion while minimizing new construction risks, particularly through extended-stay brands [7]. Stock Performance - CHH shares have increased by 23.4% over the past month, outperforming the Zacks Hotels and Motels industry's growth of 9.8%, positioning the company to benefit from ongoing unit expansion and franchising initiatives [8].

Core Viewpoint - H World Group (HTHT) has significantly outperformed its peers in the Consumer Discretionary sector this year, with a year-to-date return of approximately 46.8% compared to the sector average of 3.3% [4]. Company Performance - H World Group is currently ranked 9 in the Zacks Sector Rank among 264 companies in the Consumer Discretionary group [2]. - The Zacks Rank for H World Group is 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3]. - The consensus estimate for HTHT's full-year earnings has increased by 7% over the past quarter, reflecting improved analyst sentiment [3]. Industry Context - H World Group operates within the Hotels and Motels industry, which consists of 16 stocks currently ranked 161 in the Zacks Industry Rank [5]. - The Hotels and Motels industry has seen a decline of about 1% year-to-date, indicating that H World Group is performing better than its industry peers [5]. - In contrast, SharkNinja, Inc. (SN), another outperforming stock in the Consumer Discretionary sector, is part of the Consumer Products - Discretionary industry, which has decreased by 5.6% this year [6].

Core Viewpoint - Investors should closely monitor Wyndham Hotels & Resorts, Inc. (WH) stock due to significant implied volatility in the options market, particularly for the Feb 20, 2026 $50.00 Call option [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectation of future price movement, with high levels suggesting anticipation of a significant price change or an upcoming event that could trigger a rally or sell-off [2] - The current high implied volatility for Wyndham Hotels suggests that options traders are expecting a substantial move in the stock price [3] Group 2: Analyst Sentiment - Wyndham Hotels currently holds a Zacks Rank of 4 (Sell) within the Hotels and Motels industry, which is in the bottom 22% of the Zacks Industry Rank [3] - Over the past 60 days, no analysts have raised their earnings estimates for the current quarter, while six have lowered their estimates, resulting in a decrease of the Zacks Consensus Estimate from $1.12 to $0.90 per share [3] Group 3: Trading Strategy - The high implied volatility may indicate a trading opportunity, as seasoned options traders often seek to sell premium on options with high implied volatility to capture decay [4] - The goal for these traders is for the underlying stock to not move as much as initially expected by expiration [4]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1] Company Overview: H World Group (HTHT) - H World Group currently holds a Momentum Style Score of B, indicating potential for strong performance based on price changes and earnings estimate revisions [3] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for outperformance in the market [4] Price Performance - HTHT shares have increased by 3.9% over the past week, while the Zacks Hotels and Motels industry has decreased by 0.83% during the same period [6] - Over the last month, HTHT's price change is 6.42%, significantly outperforming the industry's 0.77% [6] - In the last quarter, HTHT shares rose by 25.7%, and over the past year, they gained 43.1%, compared to the S&P 500's increases of 5.09% and 14.7%, respectively [7] Trading Volume - HTHT's average 20-day trading volume is 1,478,450 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - Recent earnings estimate revisions for HTHT show a positive trend, with two estimates moving higher for the full year, raising the consensus estimate from $1.97 to $2.09 [10] - For the next fiscal year, two estimates have also increased, with no downward revisions noted [10] Conclusion - Given the strong momentum indicators and positive earnings outlook, HTHT is recommended as a stock to consider for near-term investment opportunities [12]

Group 1 - InterContinental Hotels (IHG) is currently outperforming its peers in the Consumer Discretionary sector, with a year-to-date return of approximately 8%, compared to the sector average of 2.2% [4] - The Zacks Rank for IHG is 2 (Buy), indicating a positive earnings outlook, with the consensus estimate for full-year earnings having increased by 0.3% over the past quarter [3] - IHG belongs to the Hotels and Motels industry, which has an average year-to-date loss of 7%, further highlighting IHG's strong performance relative to its industry peers [5] Group 2 - The Consumer Discretionary sector includes 266 individual stocks, with IHG contributing to the sector's overall ranking of 12 in the Zacks Sector Rank [2] - Another stock in the Consumer Discretionary sector, Adtalem Global Education (ATGE), has also shown strong performance with a year-to-date return of 5.8% and a Zacks Rank of 2 (Buy) [4][5] - The Schools industry, where Adtalem operates, has a ranking of 45 and has experienced a decline of 5.1% since the beginning of the year, contrasting with IHG's performance [6]

Group 1 - The stock of Choice Hotels International, Inc. (CHH) is experiencing significant attention due to high implied volatility in the options market, particularly for the Dec 19, 2025 $80.00 Call option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a substantial price change or an upcoming event that could trigger a rally or sell-off [2] - Analysts currently rate Choice Hotels as a Zacks Rank 3 (Hold), placing it in the bottom 24% of the Hotels and Motels industry, with no earnings estimate increases and two decreases over the last 60 days, leading to a consensus estimate drop from $1.59 to $1.56 per share [3] Group 2 - The high implied volatility for Choice Hotels may indicate a developing trading opportunity, as options traders often seek to sell premium on such options, hoping the stock does not move as much as expected by expiration [4]

Company Overview - Legacy Education Inc. (LGCY) is part of the Consumer Discretionary sector, which includes 265 companies and is currently ranked 12 in the Zacks Sector Rank [2] - The company has a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimates and revisions [3] Performance Analysis - Over the past three months, the Zacks Consensus Estimate for LGCY's full-year earnings has increased by 5.6%, reflecting improved analyst sentiment [4] - Year-to-date, LGCY has returned approximately 19.7%, significantly outperforming the Consumer Discretionary sector's average return of 0.7% [4] Industry Context - Legacy Education Inc. operates within the Schools industry, which consists of 19 stocks and is currently ranked 66 in the Zacks Industry Rank [6] - The Schools industry has experienced an average decline of 6.7% year-to-date, indicating that LGCY is performing better than its industry peers [6] Comparative Analysis - Another notable stock in the Consumer Discretionary sector is H World Group (HTHT), which has returned 39.9% year-to-date and also holds a Zacks Rank of 2 (Buy) [5] - H World Group is part of the Hotels and Motels industry, which is ranked 188 and has seen a decline of 4.3% year-to-date [6] Investment Outlook - Investors interested in Consumer Discretionary stocks should continue to monitor Legacy Education Inc. and H World Group for their strong performance [7]

Core Viewpoint - The Zacks Hotels and Motels industry is facing challenges due to economic uncertainty, labor shortages, and declining occupancy and RevPAR, but companies are pursuing growth strategies to enhance their portfolios and customer loyalty [1][3][4]. Industry Overview - The Zacks Hotels and Motels industry includes companies that own, lease, manage, develop, and franchise hotels, as well as those involved in vacation ownership and mobile accommodations [2]. Current Trends - Economic uncertainty and slowing growth are impacting hotel performance, with inflation and high interest rates leading to reduced discretionary spending and weaker bookings [3]. - Labor shortages and rising wages are significant challenges, affecting staffing levels and service quality, which in turn impacts profitability [4]. - Recent data indicates a decline in key performance metrics, with U.S. hotel occupancy dropping to 60.9% and RevPAR falling 4.6% to $93.97 [5]. Growth Strategies - Digitalization is a key focus for hotel owners, who are leveraging technology to enhance guest experiences and optimize pricing, which may help capture additional market share [6]. Industry Performance - The Zacks Hotels and Motels industry currently ranks 182, placing it in the bottom 25% of Zacks industries, indicating dull near-term prospects [8][9]. - Over the past year, the industry has underperformed the S&P 500, declining 9.4% compared to the sector's decrease of 17.3% [10]. Valuation Metrics - The industry is trading at a trailing 12-month EV/EBITDA of 15.59X, lower than the S&P 500's 17.94X, with a historical range between 13.17X and 89.02X over the past five years [13]. Notable Companies - **Marriott International, Inc. (MAR)**: Benefiting from room growth and digital transformation, with a projected 7.6% increase in 2025 earnings [15][16]. - **Hilton Worldwide Holdings Inc. (HLT)**: Strong net unit growth and a focus on luxury and digital advancements, with a projected 12.6% growth in 2025 EPS [19][20]. - **Choice Hotels International, Inc. (CHH)**: Focused on unit expansion and strategic partnerships, with a projected 1.6% growth in 2025 earnings [23][24].