This ‘Strong Buy’ Stock Just Hit a New 10-Year High

• DiamondRock Hospitality (DRH) exhibits strong technical momentum, with shares recently hitting a new 10-year high.
• Shares are up more than 80% over the past year.
• DRH maintains a 100% “Buy” technical opinion from Barchart.
• Analyst sentiment is bullish, with multiple “Buy” ratings.

Today’s Featured Stock

Valued at $2.85 billion, DiamondRock Hospitality (DRH) is a self-advised real estate company that owns, acquires, and invests in upscale hotel properties located primarily in North America. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals and superior current momentum. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. DRH checks those boxes. The Trend Seeker issued a new “Buy” signal on Oct. 12. Since that signal, DRH is up 11.46%.

Barchart’s Technical Indicators for DiamondRock Hospitality

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

DiamondRock hit a 10-year high of $14.29 on Oct. 28.

• DiamondRock has a Weighted Alpha of 80.15.
• DRH has a 100% “Buy” opinion from Barchart.
• The stock has gained 83.48% over the past 52 weeks.
• DiamondRock has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $14.18 with a 50-day moving average of $12.72.
• DRH had 10 highs and gained 12.06% in the last month.
• 60-month beta of 1.01.
• Relative Strength Index (RSI) is at 75.08.
• There’s a technical support level around $13.91.

Don’t Forget the Fundamentals

• $2.85 billion market capitalization.
• Revenue is expected to grow 2.60% this year and another 2.44% next year.

Analyst and Investor Sentiment on DiamondRock Hospitality

• Wall Street analysts followed by Barchart give the stock 7 “Strong Buy” and 8 “Hold” opinions with price targets from $11 to $16.
• Value Line rates the stock “Above Average.”
• Morningstar thinks the stock is fairly valued.
• CFRA’s MarketScope rates the stock a “Buy.”
• 8,740 investors are following the stock on Seeking Alpha, which rates it a “Strong Buy.”
• TipRanks’ analysts have a consensus price target of $14.07.
• Short interest is 6.80% of the float with 5.97 days to cover.

The Bottom Line on DiamondRock Hospitality

Consistently positive operating and free cash flow gives DiamondRock internal funding for maintenance capital, dividends, renovations, and selective portfolio investment. The recent stability and strong year-over-year free-cash-flow growth improve financial resilience and support sustained shareholder distributions.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio, it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.

On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.