Yahoo Finance Park Hotels & Resorts (NYSE:PK) delivers shareholders solid 105% return over 1 year, surging 14% in the last week alone
The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you pick the right stock, you can make a lot more than 100%. Take, for example Park Hotels & Resorts Inc. (NYSE:PK). Its share price is already up an impressive 105% in the last twelve months. On top of that, the share price is up 16% in about a quarter. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report. In contrast, the longer term returns are negative, since the share price is 32% lower than it was three years ago.
The past week has proven to be lucrative for Park Hotels & Resorts investors, so let's see if fundamentals drove the company's one-year performance.
See our latest analysis for Park Hotels & Resorts
Park Hotels & Resorts wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Park Hotels & Resorts actually shrunk its revenue over the last year, with a reduction of 33%. So we would not have expected the share price to rise 105%. It just goes to show the market doesn't always pay attention to the reported numbers. Of course, it could be that the market expected this revenue drop.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. If you are thinking of buying or selling Park Hotels & Resorts stock, you should check out this free report showing analyst profit forecasts.
A Different Perspective
We're pleased to report that Park Hotels & Resorts rewarded shareholders with a total shareholder return of 105% over the last year. This recent result is much better than the 6% drop suffered by shareholders each year (on average) over the last three. We're generally cautious about putting too much weigh on shorter term data, but the recent improvement is definitely a positive. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Park Hotels & Resorts is showing 1 warning sign in our investment analysis , you should know about...
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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