Why Hilton Worldwide Holdings Inc. (HLT) is a Top Growth Stock for the Long-Term

Hilton Worldwide Holdings Inc. (HLT) is positioned as a compelling growth stock, underpinned by a robust global development pipeline of nearly 3,600 hotels and over 503,400 rooms across 123 countries by March 2025, with half of these rooms outside the U.S. and 250,000 currently under construction. Despite a Zacks #3 (Hold) rank, HLT holds strong B ratings for both its VGM and Growth Style Scores, forecasting an 11.8% year-over-year earnings growth for the current fiscal year. Analyst sentiment is positive, with two recent upward revisions to fiscal 2025 earnings estimates, raising the consensus to $7.96 per share, complemented by an average earnings surprise of +5.8%.

Analysis

Hilton Worldwide Holdings Inc. (HLT) presents a compelling growth profile, supported by a significant global expansion strategy. As of March 31, 2025, the company's development pipeline encompasses nearly 3,600 hotels and over 503,400 rooms across 123 countries, with approximately half of these rooms located outside the United States and 250,000 rooms currently under construction. This substantial pipeline underscores HLT's commitment to long-term market penetration and capacity expansion.

The company's financial outlook is robust, with a forecasted year-over-year earnings growth of 11.8% for the current fiscal year. This positive trajectory is further reinforced by recent analyst activity, as two analysts revised their fiscal 2025 earnings estimates higher within the last 60 days, leading to a $0.01 increase in the Zacks Consensus Estimate to $7.96 per share. HLT also demonstrates a consistent ability to exceed expectations, boasting an average earnings surprise of +5.8%.

Despite holding a Zacks #3 (Hold) Rank, HLT's strong B ratings for both its VGM (Value, Growth, Momentum) and Growth Style Scores are significant. According to Zacks methodology, a #3 Rank combined with A or B Style Scores indicates potential for upside, positioning HLT as a top pick for growth-oriented investors. The overall sentiment surrounding HLT is moderately positive, reflecting these fundamental strengths.

Key Decisions for Investors

• Investors should consider HLT's robust global development pipeline and forecasted 11.8% earnings growth as key indicators of long-term potential.
• Monitor future analyst revisions and the execution of the 250,000 rooms currently under construction, as these will be critical for sustained performance.
• Evaluate HLT's Zacks #3 (Hold) Rank in conjunction with its strong B-rated Growth and VGM Style Scores, which suggest potential upside despite the neutral rank.