Bear of the Day: Hyatt Hotels Corporation (H)

Hyatt Hotels Corporation (H) stock has tumbled 16% in 2025 despite its recent rebound alongside the broader market.Hyatt’s bottom-line outlook took a turn for the worse after it offered disappointing guidance on May 1.  The global hotel and hospitality icon’s earnings outlook has tanked over the last year as it faces a difficult-to-compete against stretch and a quickly changing macroeconomic backdrop.Hyatt: What’s Going On with the Hotel GiantHyatt is a global hospitality powerhouse headquartered in Chicago, managing and franchising over 1,450 hotels and all-inclusive properties in 79 countries across six continents. The company operates under tons of different brands, and it’s expanded through acquisitions, including its planned expansion into the Caribbean and Mexico via its planned purchase of Playa Hotels & Resorts N.V.Image Source: Zacks Investment ResearchHyatt has also gone full steam ahead on an asset-light business model. The strategy is to own fewer physical properties to focus on earning money by managing and franchising the hotels and resorts.The company posted booming growth after its Covid downturn despite competition from Airbnb and others. That said, Hyatt is facing slowing growth against a difficult-to-compete stretch and a quickly changing macroeconomic backdrop.Image Source: Zacks Investment ResearchHyatt’s consensus fiscal 2025 earnings estimate has dropped from $2.59 a share to $2.00 since it reported its Q1 results on May 1, with its 2026 outlook sliding to $3.14 from $3.91. The recent downward earnings revisions have earned Hyatt a Zacks Rank #5 (Strong Sell).Stay Away from Hyatt Stock for Now?Hyatt’s negative post-Q1 revisions are part of a longer-term trend that began in early 2024.That said, the company’s long-term outlook likely remains intact, and H stock has crushed its Hotels and Motels segment over the past decade.The question in the near term is should investors buy Hyatt even though its earnings outlook continues to tank.The short answer is that investors and traders should likely stay away from the Hotel giant for now since there are plenty of other stocks and industries thriving amid the current economic environment. Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hyatt Hotels Corporation (H): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks