Shares of hospitality company Travel + Leisure (NYSE:TNL)
jumped 7.8% in the afternoon session after the company reported fourth-quarter 2025 results that beat Wall Street's expectations and provided a strong outlook for 2026. The hospitality company's revenue increased 5.7% year-on-year to $1.03 billion, exceeding analyst forecasts. Its adjusted earnings per share of $1.83 and adjusted EBITDA of $272 million also came in ahead of consensus estimates. Furthermore, Travel + Leisure guided for full-year 2026 adjusted EBITDA to be higher than analysts had projected. Despite the company's operating margin turning negative for the quarter, investors appeared to focus on the better-than-expected results and positive outlook.
Hospitality company Travel + Leisure (NYSE:TNL) reported Q4 CY2025 results beating Wall Street’s revenue expectations, with sales up 5.7% year on year to $1.03 billion. Its non-GAAP profit of $1.83 per share was 0.6% above analysts’ consensus estimates.
When Wall Street turns bearish on a stock, it’s worth paying attention.
These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as M&A advisory.
A number of stocks jumped in the afternoon session after investors wagered geopolitical tension would be contained following the U.S. military's operation in Venezuela, with the Dow hitting a fresh record.
Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions.
While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy.
A company that generates cash isn’t automatically a winner.
Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.
Travel + Leisure Co. (TNL) offers a solid 3.12% dividend yield, backed by a durable payout ratio and strong fundamentals, making it a candidate for income investors.
Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Travel + Leisure (NYSE:TNL) and its peers.
Shares of hospitality company Travel + Leisure (NYSE:TNL)
jumped 2.9% in the afternoon session after the company announced it had reduced the interest rate on its $869 million Term Loan B, a move seen as a reflection of its strong business model. This repricing, part of an amendment to its Credit Agreement, lowered the interest rate by 50 basis points. The adjustment signaled the company's improved credit profile and enhanced its financial flexibility to support future growth. Adding to the positive news, Wells Fargo initiated coverage on Travel + Leisure with an Overweight rating and a price target of $74.00, citing its estimated 2026 earnings.
Travel + Leisure Co (TNL) offers a strong 3.65% dividend yield with a sustainable payout ratio and a decade of consistent payments, making it a solid income stock.
A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.
Travel + Leisure has had an impressive run over the past six months as its shares have beaten the S&P 500 by 9.8%. The stock now trades at $61.84, marking a 21.7% gain. This was partly thanks to its solid quarterly results, and the run-up might have investors contemplating their next move.
Travel + Leisure Co (TNL) appears undervalued with strong fundamentals, including a low P/E ratio, solid profitability, a healthy 3.6% dividend yield, and an accelerating growth outlook.
