Sunstone Hotel Investors Inc. is Setting Up for a Big Move
Sunstone Hotel Investors Inc. (SHO) is trading within a rectangle pattern and when it breaks its resistance or support levels, a strong move is expected.
Sunstone Hotel Investors Inc. (SHO) is a real estate investment trust that acquires, owns, manages, and renovates the full-service hotel and select-service hotel properties across various states in the United States. The company’s portfolio consists primarily of urban, upper-upscale hotels managed under Marriott, Hilton, Fairmont, and Sheraton brands.
The company has been bouncing back from the pandemic as the company has seen recent acceleration in bookings across all its business segments. For instance, four of the company’s hotels including Oceans Edge, Chicago Embassy Suites, Hyatt Chicago and Wailea Beach Resort achieved higher room rates in the most recent quarter than in the first quarter of 2019.
While the company only had $320 million in cash as of the most recent quarter, it has almost no short-term debt. Recent sales growth is down, but sales are expected to soar 310% in the current quarter and earnings are forecasted to rise 60%. The stock appears undervalued with a trailing P/E of 15.94, but is up 43% over the past year.
Take a look at the 1-year chart of SHO below with added notations:
Chart of SHO provided by TradingView
SHO has moved into a sideways trading range and in a rectangle pattern over the past few months. While in the range, the stock has formed a resistance level at around $13.50 (red), and a level of support at $12 (green). SHO is now sitting in between those marks, but at some point the stock will have to either break the resistance or the support.
The possible long positions on the stock would be either on a pullback to $12 or on a breakout above $13.50. The ideal short opportunity would be on a break below $12.
Want to Discover More Great Trades?
I have explored virtually every flavor of technical analysis and chart pattern known to mankind. The sad fact is that the vast majority of them don’t work at all.
That is why I recently put together this special report to help investors focus on the only 5 chart patterns that matter…the ones that lead to the most timely and profitable stock trades. Click below to get your copy now!
Have a good trading day!
Christian Tharp, CMT
SHO shares were trading at $12.90 per share on Wednesday morning, down $0.02 (-0.15%). Year-to-date, SHO has gained 13.86%, versus a 12.79% rise in the benchmark S&P 500 index during the same period.
About the Author: Christian Tharp
I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group and Yolo Publishing.Sunstone Hotel Investors Inc. is Setting Up for a Big Move appeared first on StockNews.com
Entrepreneur Editors' Picks
James Dyson Created 5,127 Versions of a Product That Failed Before Finally Succeeding. His Tenacity Reveals a Secret of Entrepreneurship.
7 Meaningful Ways Your Business Can Honor Memorial Day
Breast Implants Left This Founder With Debilitating Symptoms, So She Launched an Intimate-Apparel Line That Goes Beyond Buzzwords
Kids in the Hall's Bruce McCulloch Says TikTok Is the New Punk Rock
'I Am Not a Diversity Quota,' Says the Founder Disrupting the Dessert Category
Memorial Day Is a Time for Remembrance, So What's With All the Mattress Sales?
Pharrell Williams, Contemporary Artist Nina Chanel Abney and Brand-Builder Shaun Neff Announce Launch of Game-Changing NFT Platform