Top Rated Consumer Stocks Following Peter Lynch's Model

Analysis reveals Hilton, Carriage, and Marriott show promise. With ratings at 72% according to Peter Lynch's model, investors should consider the balance of strengths and weaknesses across these stocks.

Date: 10-04-2025

AI Rating: 6

Investment Overview
This report highlights three top-rated Consumer Discretionary stocks: Hilton Worldwide Holdings Inc. (HLT), Carriage Services Inc. (CSV), and Marriott International Inc. (MAR), all rated at 72% under Peter Lynch's P/E/Growth model. Each stock possesses a set of strengths and weaknesses that can impact their market performance significantly.
Key Metrics Analyzed
The two main metrics examined were the Earnings Per Share (EPS) Growth Rate and the Total Debt to Equity Ratio. All three companies passed the EPS Growth Rate criterion, indicating positive earnings trajectories which are favorable for investors looking for growth. However, the Total Debt to Equity Ratio has been marked as a fail for all three, which raises concerns about the leverage levels and financial stability. High debt can lead to increased risk in economic downturns and may affect profit stability, thus impacting investors' confidence.
Stocks Analysis
1. **Hilton Worldwide Holdings Inc. (HLT)**: With a strong EPS growth rate, Hilton has positioned itself well in the hospitality sector. However, the failure in the debt metric indicates a need for caution regarding its financial leverage. Affected by high competition, the market may respond negatively to any changes in lodging demand.
2. **Carriage Services Inc. (CSV)**: Its consistent performance in EPS growth underlines a stable demand for its services; however, the debt ratio is concerning. This could sway investor sentiment and lead to volatility in its stock price.
3. **Marriott International Inc. (MAR)**: Similarly to Hilton, Marriott's strong EPS growth reinforces its competitive status. Nevertheless, the high debt levels could cause concerns among cautious investors, especially in unpredictable economic landscapes.
Conclusion
Overall, while all three companies show promise through EPS growth, caution is warranted due to the common concern regarding high debt levels. Tracking revenue growth and cost management will be critical as these factors will directly influence profitability and stock prices moving forward.

Stocks: HLT CSV MAR