Underweight September was a tough month for the S&P hotels, resorts and cruise lines index. First, Carnival Corp, the largest cruise line operator warned that net revenue yield growth was slowing as prices for next year are flat;…
Underweight Carnival Corp, the largest cruise line operator, saw its share price plunge Monday after it dropped its earnings guidance range to absorb the impact of rapidly rising fuel costs. This share price drubbing dragged the other…
Underweight When we downgraded the S&P hotels, resorts and cruise lines index to underweight last year, it was because the index's outperformance to that date had been due to the cruise line component companies (second panel)…
Underweight The S&P hotels, resorts and cruise lines index had a remarkable run between 2016 and 2017, handily outperforming the S&P 500 (top panel). We downgraded the index to underperform in September of last year as the…
Underweight This year has been a good one to be overweight the S&P hotels, resorts and cruise lines index which has outperformed the S&P 500 by a wide margin. The index's strength has been most pronounced since the…
Highlights Portfolio Strategy The S&P hotels, resorts and cruise lines index will suffer from a profit margin squeeze, which should weigh on valuations. Cut exposure to underweight. A cyclical capex recovery is a boon for…
The S&P hotels index has gone vertical since our upgrade to neutral in November of last year. Worryingly, sector valuations appear misleadingly attractive (second panel) as forward earnings revisions have spiked much faster than the…
We took profits on our underweight S&P hotel index position and upgraded to neutral in November, because a number of companies reduced 2017 guidance and revenue per room (REVPAR) expectations at the same time that value had improved…
The S&P hotels index had been in a relative performance bear market since late last year when we reduced it to underweight, but downside risks have diminished even though a number of players have lowered 2017 guidance and revenue…
Highlights Portfolio Strategy The rise in Treasury yields is approaching a threshold that has often caused equity market indigestion. Stay focused on current monetary conditions rather than fiscal unknowns. The bear market in lodging…