In this article, we will discuss Bill Ackman stock portfolio: 8 top stock picks.
Bill Ackman is an investor whose portfolio is well-positioned to benefit from the economic environment’s improvement as interest rates trend down. In addition to being vocal about investment opportunities especially when there is a high risk reward, Ackman also does not shy away from giving his opinion on what he thinks is wrong. In September he took on the Brazilian Supreme Court justice on its decision to block Elon Musk’s social networking app. The billionaire investor reiterated that the decision could end up driving away investors and harming the country.
The “illegal shut down of X and account freeze at Starlink put Brazil on a rapid path to becoming an uninvestable market,” Ackman said in a post on X. “China committed similar acts leading to capital flight and a collapse in valuations. The same will happen to Brazil unless they quickly retreat from these illegal acts.”
It is not the first time that the legendary investor has echoed his opinion having already withheld a huge donation from Harvard University because of purported anti-Semitism. He also played a role in bringing down President Claudine Gay.
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Can Geopolitical Tensions and Inflation Impact Ackman’s Portfolio?
Ackman stands out among the top echelons because he focuses on high-quality large-cap companies with limited downside potential. Over the past five years, the billionaire investor has generated a 31% annualized return, affirming why he is one of the most revered investors on Wall Street.
The fundamental value investor has made a name for himself in investing and pushing for strategic changes in companies in a bid to increase shareholder value. Ackman’s investment strategy focuses on holding a limited number of companies, mostly eight to 12, for the long term in his portfolio.
As one of the sharpest investors on Wall Street, Bill Ackman’s stock portfolio is well-positioned to benefit from an improving investment environment. The US Federal Reserve cutting interest rate by 50 basis points is increasingly emerging as a key catalyst poised to push the overall market higher.
While the S&P 500 was already up by more than 15% before the interest rate cut, it is currently flirting with record highs with more than 20% gains. The rally came on growing optimism that the lower interest rate environment would support the US economy, which was struggling, as depicted by weakness in the labor market and slow manufacturing.
While an accommodative interest rate environment is a must-welcome factor that could drive Ackman’s portfolio higher, a combination of regional conflict in the Middle East and rising inflation could curtail the gains. According to Stephen Roach, a senior fellow at Yale Law School’s Paul Tsai China Center, a completely blown conflict in the Middle East could trigger inflationary risks even as central banks start easing monetary policy.
Roach expects the markets to whipsaw back and forth amid heightened volatility in response to the geopolitical tensions. Kelvin Tay, regional chief investment officer at UBS Global Wealth Management, has already warned that Israel’s response to Iran’s attack could throw the Fed’s 50 basis point rate cut off track.
Bill Ackman’s portfolio could feel the effects of escalating geopolitical tensions in the Middle East on the investment environment turning jittery. The portfolio suffered one of its biggest losses in July as it erased most of its 2024 gains. The portfolio lost 4.7% in the month, fueled by losses in one of Ackman’s investments in a large record label.
The string of negative losses persisted, with Ackman struggling to generate interest in his plan for one of his investment firms in the market. After failing to garner enough investor interest, the planned launch of Pershing Square USA (PSUS) IPO, which Bill Ackman once claimed could raise $25 billion, was canceled.
Ackman confirmed the withdrawal, reiterating that they will revisit the IPO once they are ready to launch a revised transaction. The pullback comes on investors raising concerns about the proposed fund’s structure and where he knew cash would be invested given that the market is at an all-time high with valuations getting out of hand. With that, let’s dig deeper into Bill Ackman’s stock portfolio.
Our Methodology
We sifted through Pershing Square’s Q2 2024 13F filings and picked the hedge fund’s top 8 stock picks. The stocks are ranked in ascending order of Pershing Square’s stake in them, as of June 30. We have also mentioned the hedge fund sentiment around each stock.
At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Bill Ackman Stock Portfolio: Top 8 Stock Picks
8. Nike, Inc. (NYSE:NKE)
Number of Hedge Fund Holders as of Q2: 66
Pershing Square’s Equity Stake: $229.13 Million
NIKE, Inc. (NYSE:NKE) is a consumer cyclical investment play in Bill Ackman’s stock portfolio, offering exposure in the design, development, marketing, and sale of athletic footwear, apparel, equipment, accessories, and services worldwide. The hedge fund initiated a new stake in the company, acquiring 3.04 million shares valued at $229.13 million, representing 2.2% of their portfolio.
The company has been under pressure over the past few years due to soaring inflation and a spike in interest rates. Revenues were flat in the first quarter of the year as the company felt the full brunt of consumer purchasing power coming under pressure amid high interest rates and a focus shift to necessities.
However, Ackman has contended to hold the stock in his portfolio, banking on the company’s long track record and ability to turn around. The company is already positioning itself for the future following the recent management changes that saw the ousting of CEO John Donahoe, who was replaced by former executive Elliott Hill.
The wonderful thing about market leaders is that bad management for a few years usually doesn’t destroy the company. Although there is competition, NIKE, Inc. (NYSE:NKE)’s market share still surpasses that of most of its main rivals. It still boasts the biggest advertising budget, deepest pockets, and a roster of elite sponsors, including LeBron James, Michael Jordan, Caitlin Clark, and numerous others.
NIKE, Inc. (NYSE:NKE) delivered solid first-quarter earnings for fiscal 2025, totaling $0.70 against a consensus estimate of $0.52. On the other hand, other metrics were disappointing, and its revenues of $11.59 billion fell short of analysts’ expectations of $11.64 billion by roughly 0.5%.
The management suggested that the year 2025 will be a transitional one, highlighting the ongoing need for innovation and improved logistical efficiency to overcome present difficulties. In Q2 2024, there were 66 hedge funds that held positions in the stock, with total stakes amounting to $3.19 billion.
Mar Vista Focus strategy stated the following regarding NIKE, Inc. (NYSE:NKE) in its first quarter 2024 investor letter:
“NIKE, Inc.’s (NYSE:NKE) recent earnings report was a mixed bag. While revenue met expectations and earnings exceeded them, the stock price dipped due to management’s cautious outlook for fiscal 2025. The company is currently undergoing a period of internal restructuring and product line adjustments, which is expected to lead to flat revenue growth in the first half of the coming fiscal year. However, this transition aims to position Nike for long-term success.
Our conviction in Nike remains high, and we expect it to emerge stronger and more competitive once the restructuring is complete despite the softer revenue forecast. Nike still anticipates earnings will grow around 10% in calendar 2024 and will accelerate to 15% in 2025 as execution normalizes.”
7. Brookfield Corporation (NYSE:BN)
Number of Hedge Fund Holders as of Q2: 34
Pershing Square’s Equity Stake: $284.74 Million
Brookfield Corporation (NYSE:BN) is a financial services company that operates as an alternative asset manager and real estate investment manager. It focuses on real estate, renewable power, infrastructure venture capital and private equity assets.
The stock has been virtually flat over the last three years due to rising interest rates, which has affected many of its business segments and presented Ackman with a substantial opportunity. Despite the difficult business climate, Brookfield Corporation (NYSE:BN), which consists of a diverse group of companies, produced distributable earnings (DE) before realizations that rose 11% annually while DE increased by 80%.
A sizable market for renewable energy is expanding. According to Bloomberg, global investment in renewable energy technologies is expected to reach $1.8 trillion by 2023. With a 17% annual increase, that sets a new record. More than 200,000 megawatts of renewable power generation are currently owned by Brookfield Renewable, which is in turn majority owned by Brookfield Corporation. Solar, wind, and hydropower account for most of that, but the company also has about 6,000 megawatts of energy storage infrastructure in place, and another 45,000 megawatts are being developed. In short, Brookfield Renewable is already a major player in the renewable energy space.
Brookfield Renewable is a dividend king through its wind and hydropower plants that generate a steady flow of revenue for the business. Although it has fluctuated over time, Brookfield Renewable has paid out dividends consistently since its launch in 2020. The yield is currently very near the 5% threshold.
In the second quarter of 2024, Pershing Square, led by Bill Ackman, initiated a new stake in Brookfield Corporation. They purchased approximately 6.8 million shares, valued at around $284.7 million. In the same period, 34 hedge funds held positions in Brookfield Corporation (NYSE:BN), with total stakes amounting to $2.52 billion.
6. Canadian Pacific Kansas City Limited (NYSE:CP)
Number of Hedge Fund Holders as of Q2: 44
Pershing Square’s Equity Stake: $1.18 Billion
Canadian Pacific Kansas City Limited (NYSE:CP) is one of Bill Ackman’s investments in the industrial sector, offering exposure to the railroad business. Ackman has held stakes in the company since 2010 and upped stakes in 2021 by reiterating that the railroad remains the cheapest and most viable way of transporting heavy freight in North America.
Historically, the Canadian Pacific Kansas City Limited (NYSE:CP) was the smaller of the two main railroads in Canada. The company’s acquisition of Kansas City Southern in 2023 brought about this change. From a deep-water port in Mexico to a vast network spanning the spine of North America, the deal gave Canadian Pacific immense reach. Together with its current east-west track across Canada, this network makes freight move quickly across the continent possible.
Canadian Pacific Kansas City Limited (NYSE:CP) has made better use of its assets and provided cash flow throughout market cycles thanks to its precise railroading operating model and focused, disciplined execution approach. Consequently, it saw a 14% year-over-year increase in sales to $3.6 billion in the second quarter of 2024. Its operating ratio at the end of the June quarter was a healthy 64%, and its adjusted earnings per share increased by 27% to $1.05. In contrast, its Q2 operating expenses increased by a mere 5% yearly to $2.33 billion.
Since analysts predict earnings to grow by 13% annually over the next five years, Canadian Pacific Kansas City Limited (NYSE:CP) stock is reasonable at 26 times forward earnings. Additionally, it comes with a 0.67% dividend yield, ideal for generating passive income.
According to Insider Monkey’s second-quarter database, 44 hedge funds were long Canadian Pacific Kansas City Limited (NYSE:CP), compared to 48 funds in the prior quarter.
Here is what Pershing Square Holdings said about Canadian Pacific Kansas City Limited (NYSE:CP) in its fourth quarter 2023 investor letter:
“Canadian Pacific Kansas City Limited (NYSE:CP) is a high-quality, inflation-protected, unique North American railroad that operates in an oligopolistic industry with significant barriers to entry. In 2023, Canadian Pacific made history when it closed the acquisition of Kansas City Southern and renamed the combined company Canadian Pacific Kansas City, creating the only railroad with a direct route connecting Canada, the United States, and Mexico. This transformative acquisition will generate substantial long-term shareholder value as well as create competitive options for shippers and reduce greenhouse gas emissions by converting trucks to rail transportation.
In the 11 months since the acquisition closed, CPKC has already realized $350 million of run[1]rate revenue synergies, exceeding management’s expectations despite a soft demand environment. Broad-based contract wins across end markets, including chemicals, automotive, and cross-border intermodal, demonstrate the attractiveness of the company’s unique service product.
CPKC is also ahead of the plan on realizing cost synergies as the team successfully integrates the two networks after overcoming some operational challenges in Mexico. We believe CPKC is well on its way to achieving management’s goal to more than double the company’s earnings per share by 2028 while holding capital expenditures at current levels. We continue to believe that CPKC’s one-of-a-kind network and superb team are well positioned to deliver profitable long-term growth in the coming years.”
5. Howard Hughes Holdings Inc. (NYSE:HHH)
Number of Hedge Fund Holders as of Q2: 35
Pershing Square’s Equity Stake: $1.22 Billion
Howard Hughes Holdings Inc. (NYSE:HHH) is Bill Ackman’s top investment player in the real estate sector. He held 18.85 million shares in the company, valued at $1.22 billion. The company holds various properties, including multifamily residential, hospitality, and seaports.
The main line of business for Howard Hughes Holdings Inc. (NYSE:HHH) is the creation of master-planned communities or MPCs. Rather than the smaller neighborhoods; these large-scale developments are more appropriately characterized as small cities.
Howard Hughes Holdings Inc. (NYSE:HHH)’s business strategy aims to create value over the long run. The company buys large tracts of land (like the 37,000 acres it bought in the Phoenix area a few years ago) and sells homebuilders a smaller portion of the land so they can build residential communities.
These residences generate demand for commercial real estate, such as retail and office buildings, which Howard Hughes Holdings Inc. (NYSE:HHH) develops and leases for rental income. Because of these business facilities, home builders find the surrounding land to be more valuable and sell more homes.
The goal is to construct as many value-added elements as possible to optimize the raw land’s worth. There is no denying the business’s success. For instance, the price per acre at its Houston-based Woodlands MPC increased from $364 to $2,273 between 2011 and 2024. Because of its skill at developing land, Howard Hughes increased the value of its land portfolio from $3.7 billion to $4.1 billion between 2017 and 2024, even after selling 3,447 acres for $2.1 billion.
The Texas-based company bounced back to profitability in the second quarter with earnings of 42 cents a share from a loss of 39 cents a share last year owing to robust residual land sales in its master-planned communities. Its revenues were up 44% to $317.4 million.
Of the 912 hedge funds tracked by Insider Monkey at the end of Q2 2024, Howard Hughes Holdings Inc. (NYSE:HHH) was held by 35 hedge funds, compared to 32 in the previous quarter.
4. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders as of Q2: 216
Pershing Square’s Equity Stake: $1.38 Billion
Alphabet Inc. (NASDAQ:GOOGL) has to be Ackman’s biggest holding in the technology sector while offering exposure to the artificial intelligence frenzy. While many investors were worried about how AI would affect Alphabet’s core Google business, Ackman’s firm purchased more shares. His fund holds 7.55 million shares of the company, as of Q2 2024.
Alphabet Inc. (NASDAQ:GOOGL)’s core business is well-positioned to benefit from AI. Google Cloud’s revenue growth is already accelerating, reaching a $10 billion quarterly revenue run rate thanks to artificial intelligence.
Several well-known AI companies use Google Cloud to train and implement their AI models and services. Conversely, chatbots such as OpenAI’s ChatGPT don’t seem to have impacted core Search ad revenue thus far. In the latest quarter, Alphabet Inc. (NASDAQ:GOOGL)’s primary product saw a 14% increase in revenue. Nevertheless, it observed some weakness in the growth of YouTube ad revenue.
In the age of artificial intelligence (AI), Ackman has stated that he believes Alphabet has a competitive advantage due to the data it generates from search and related products. The gamble has paid off thus far, as Alphabet Inc. (NASDAQ:GOOGL) has outperformed the S&P 500. The company has also dismissed worries that chatbots like ChatGPT will eventually disrupt search.
Google is reducing expenses across the board even as it keeps making significant investments in its data centers to increase its AI inference and training capacity. Because of this, the operating margin is rising swiftly and contributing to the bottom line’s growth. For the next five years, analysts currently project earnings per share growth of more than 20% annually from Alphabet.
In addition to the robust growth, Alphabet remains one of Ackman’s top holdings, yielding 0.48% on dividends while trading at a discount with a price-to-earnings multiple of 19. There were 216 hedge funds long Alphabet Inc. (NASDAQ:GOOGL) in the second quarter, with a total stake value of $35.31 billion.
Baron Fifth Avenue Growth Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q2 2024 investor letter:
“We also added to Alphabet Inc. (NASDAQ:GOOG). The company reported solid financial results with first quarter revenue growth of 15% year-over-year, driven by 14% growth in search, 21% growth in YouTube, and 28% growth in cloud (which accelerated from 26% growth in the fourth quarter). The company has also increased its cost discipline efforts, which drove operating margins to 31.6% (compared to 25% in the first quarter of 2023). With regards to GenAI, while we are cognizant of the potential risks to the dominance of search, we believe that on the range of outcomes, Alphabet remains well positioned through its massive user distribution (9 products with over 1 billion users each), long-standing AI research labs (DeepMind and Google Brain), top AI talent, a solid cloud computing division in Google Cloud, and deep pockets for investing in AI. During the quarter, Alphabet also held its annual I/O conference, where it provided an update on its efforts in AI including: Gemini is now used by 1.5 million developers; model quality is expanding rapidly (e.g., context window is now 2 million tokens of length); the new genomics model, Alphafold 3 can predict structures of molecules and potentially accelerate drug discovery; new TPU6 AI chips has shown a 4.7 times improvement in compute performance compared to the prior generation; and Gemini for workspace is showing early data on a 30% increase in user productivity. Alphabet also has real value in assets such as Waymo, which are not factored into valuation today (and are potentially included at a negative valuation as they currently generate losses, hurting EPS). We continue to believe that the current valuation of Alphabet presents an attractive risk/reward for long-term owners of the business and have therefore increased our position.”
3. Restaurant Brands International Inc. (NYSE:QSR)
Number of Hedge Fund Holders as of Q2: 22
Pershing Square’s Equity Stake: $1.63 Billion
Restaurant Brands International Inc. (NYSE:QSR) is the third largest holding in Bill Ackman’s stock portfolio, operating as a quick-service restaurant. Pershing Square is the most remarkable shareholder of the company, with 23.14 million shares. It gathers revenues from the lease income of its franchised stores, royalty fees, and company-owned restaurant operations.
It is one of the companies that started to feel the wrath of heightened inflation and high interest rates that forced most people to eat from home. However, Restaurant Brands International Inc. (NYSE:QSR) could pick up some steam with the industry in value mode after the Fed cut by 50 basis points.
The company generates a consistent and increasing cash flow with its global expansion. One aspect of the company’s financial sheet that stands out is its cash surplus—more than $1 billion. Furthermore, any loss of pricing power and volume declines during the economic downturn will probably be offset by consumers moving away from the average and toward more affordable meals.
As the weakest link in the business, Restaurant Brands International Inc. (NYSE:QSR) is placing a large bet on its ability to turn around the Burger King franchise. It bought Carroll’s Restaurant Group earlier this year, which was formerly the biggest Burger King franchisee. At the end of June, Popeye’s China was also acquired. It is searching for a new partner for the China chain and intends to franchise most of Carroll’s restaurants.
After experiencing a decline for three years before COVID-19, the Tim Horton’s segment at RBI appears to have turned around. Tim Horton’s sales increased by 30% in 2023, according to RBI, due to several initiatives to boost transaction capacity and appeal to a wider market. Its total sales were up 175 in the second quarter to $2.08 billion, bolstered by acquiring Burger King restaurants in the US.
As of the close of Q2 2024, 22 hedge funds tracked by Insider Monkey reported having stakes in Restaurant Brands International Inc. (NYSE:QSR). The consolidated value of these stakes is over $2.2 billion.
2. Chipotle Mexican Grill, Inc. (NYSE:CMG)
Number of Hedge Fund Holders as of Q2: 68
Pershing Square’s Equity Stake: $1.81 Billion
Chipotle Mexican Grill, Inc. (NYSE:CMG) has been one of the biggest holdings in Bill Ackman’s stock portfolio since 2016 as the legendary investor acquired stakes, taking advantage of a foodborne illness that pushed the stock down by 50%. He currently owns 28.82 million shares in the company.
While the stock has pulled back significantly from its 52-week high, it remains a solid pick in the restaurant sector. The company has made a name in the growing niche between cheaper fast-food chains and pricier restaurants.
By improving its mobile app, growing its rewards program, and introducing new grab-and-go ordering options, Chipotle Mexican Grill, Inc. (NYSE:CMG) has hit new levels of revenue and earnings growth. Chipotle gathered more customer data using analytics tools, allowing it to improve the menu and run more successful marketing campaigns.
In addition, it stopped offering steep discounts and promotions initially intended to win back customers following its outbreaks of foodborne illness. Instead, it invested its money in new digital, social media, and television advertising campaigns. Because of this, Chipotle Mexican Grill, Inc. (NYSE:CMG)’s comps growth has been positive over the last six years, and it has continuously increased its operating margins at the restaurant level while opening new locations. Additionally, it has raised prices frequently and added new drive-thru Chipotles to accommodate more customers and counteract the inflationary headwinds of the previous two years.
Chipotle Mexican Grill, Inc. (NYSE:CMG) defies the trend of most retail businesses operating on extremely narrow profit margins, particularly restaurants. The operating margin was a fantastic 15.8% last year. Profitability has been aided by pricing power and careful expense management. Even though the stock trades at a premium with a price-to-earnings multiple of 42, the company is expected to grow at an impressive rate.
As of the end of the second quarter of 2024, 68 hedge funds had stakes in Chipotle Mexican Grill, Inc. (NYSE:CMG). Bill Ackman’s Pershing Square is the largest stakeholder of the company, with 28.82 million shares worth $1.81 billion.
Here is what Pershing Square Holdings said about Chipotle Mexican Grill, Inc. (NYSE:CMG) in its Q2 2024 investor letter:
“On August 13th, Chipotle Mexican Grill, Inc. (NYSE:CMG) announced that CEO Brian Niccol would be leaving the company to become the CEO of Starbucks. Brian has led a superb turnaround at Chipotle, which has put the company firmly on the path of sustainable long-term growth. While we are disappointed to see Brian go, one of the measures of a great CEO is the company that he leaves behind. Brian has built an extraordinary team at Chipotle that we expect will not lose a step in his departure. We are grateful to Brian for the extraordinary value he has created for CMG shareholders and Pershing Square.
Chipotle delivered outstanding results in the first half of 2024 as the brand’s industry-leading value proposition of fresh food, customization, and convenience at fair prices continues to resonate with customers. During the second quarter, same-store sales grew an impressive 11%, or 55% from 2019 levels. Successful marketing, including the return of the fan-favorite Chicken Al Pastor limited time offering, and faster throughput drove transaction growth of over 8%, with gains across all income cohorts. Although sales growth has moderated in the summer amid a broader deceleration in the restaurant industry, Chipotle continues to gain share. The launch of Smoked Brisket for a limited time starting in September, one of the company’s most requested menu items, should further improve trends….” (Click here to read the full text)
1. Hilton Worldwide Holdings Inc. (NYSE:HLT)
Number of Hedge Fund Holders as of Q2: 64
Pershing Square’s Equity Stake: $1.95 Billion
Hilton Worldwide Holdings Inc. (NYSE:HLT) is the biggest holding in Bill Ackman’s stock portfolio, offering exposure to the hospitality sector. The company manages the franchising and leasing of hotels and resorts. While Ackman invested in the company first in 2016, he has grown his stakes to worth $1.9 billion.
Its edge as one of Ackman’s top stock holdings stems from its robust portfolio of 24 brands and over 7,600 hotels. Hilton benefits from its scale in several ways. It spends a lot of money on marketing, offering perks to consumers, and running a sizable loyalty program. With almost 190 million members, the Hilton program appeals to hotel operators, allowing Hilton Worldwide Holdings Inc. (NYSE:HLT) to allocate more funds for loyalty initiatives.
Over the past few years, Hilton has greatly increased the scope of its offerings and recovered well from the travel industry slowdown caused by the pandemic. Revenue is predicted to increase by 2% to 4% per available room in 2024 as it grows. Hilton Worldwide Holdings Inc. (NYSE:HLT)’s ongoing room additions should result in double-digit revenue growth overall.
The hotel chain’s revenue per available room (rear) is increasing; in the first half of 2024, total revenue increased by 12% to $5.5 billion. Hilton continues to benefit from expanding the travel and tourism industries, so HLT stock should continue to rise.
The company delivered solid second-quarter results, with diluted earnings per share increasing 17% year over year to $1.91 on adjusted earnings of $917 million. Analysts expect Hilton Worldwide Holdings Inc. (NYSE:HLT) to demonstrate resilience despite a general slowdown in global revenue per available room because of its high mix of franchise fees and reduced exposure to internationally sensitive macroeconomic markets.
Insider Monkey saw that 64 hedge funds out of the 912 hedge funds held stakes in Hilton Worldwide Holdings Inc. (NYSE:HLT) as of the end of 2Q 2024.
Pershing Square Holdings, an investment holding company, released its Q2 2024 investor letter. This mentions Hilton Worldwide Holdings Inc. (NYSE:HLT). Here is what the fund said:
“In the first half of 2024, Hilton Worldwide Holdings Inc. (NYSE:HLT) generated strong revenue growth as the lodging industry experienced solid global demand against a favorable supply backdrop. Near-term industry trends remain positive, with continued strong international growth, improving business transient demand and extremely robust group demand, which is poised to sequentially accelerate in the third quarter. Leisure travel continued to moderate from the high levels of recent years following the COVID-19 reopening.
In the second quarter, HLT’s revenue per room (“RevPAR”), the industry metric for same-store sales, increased 3.5% as compared to 2023. Combined with strong 6% net unit growth, aggregate fee revenues grew 10%. Earnings per share grew 17% year-over-year, benefiting from Hilton’s excellent cost control and continued best-in-class capital return. Reflecting an incrementally challenging macroeconomic picture, principally in China, the company slightly reduced the upper end of their prior RevPAR guidance, now estimated by management to be +2% to +3%, while modestly increasing full year’s earnings guidance…” (Click here to read the full text)
While we acknowledge the potential of HLT as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than HLT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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