Investing in dividend stocks is one of the simplest ways to generate passive income. Many companies pay dividends, with several offering attractive yields. However, not every high-yielding dividend stock will provide a sustainable passive income stream.
Here are three high-yielding dividend stocks ideal for those looking to start generating passive income. They have an excellent record of paying a growing dividend, which should continue.
Image source: Getty Images.
Brookfield Infrastructure Brookfield Infrastructure (BIPC +0.72%)(BIP +0.03%) operates a globally diversified portfolio of critical infrastructure assets. It focuses on owning assets in the utilities, transport, midstream, and data sectors secured by long-term contracts and government-regulated rate structures. Those frameworks provide it with stable, durable cash flows.
The infrastructure company currently yields over 4%, several times higher than the S&P 500's 1.1% dividend yield. Brookfield Infrastructure has increased its dividend in each of its 17 years as a public company, growing the payout at a 9% compound annual rate. The company aims to increase its dividend at a 5% to 9% annual rate over the long term.
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It's in a strong position to achieve that goal. Brookfield Infrastructure estimates that its organic growth drivers, which include inflation-indexed rate increases, volume growth as the global economy expands, and expansion projects, will deliver 6% to 9% annual growth in funds from operations (FFO) per share. Meanwhile, acquisitions should push its long-term FFO growth rate above 10% annualized.
Realty Income Realty Income (O +0.64%) is one of the world's largest real estate investment trusts (REITs). The company owns a diversified portfolio of more than 15,500 retail, industrial, gaming, and other properties across the U.S. and Europe. It invests in properties secured by long-term net leases with many of the world's leading companies. Those leases supply it with very stable rental income.
The REIT pays a monthly dividend that currently yields more than 5%. Realty Income has increased its dividend 134 times since its public market listing in 1994, growing it at a 4.2% compound annual rate. It has raised its payment for 114 consecutive quarters and 31 straight years.
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Realty Income is in a strong position to continue increasing its dividend. It has a conservative dividend payout ratio, fortress balance sheet, and a growing list of strategic partners, giving it ample financial capacity to continue expanding its portfolio. Meanwhile, the REIT sees a $14 trillion total addressable market, giving it a very long growth runway.
Verizon Verizon (VZ +2.59%) is a leading mobile and broadband provider. The company generates recurring revenue by delivering these vital services to customers.
The telecom giant currently offers a dividend yielding nearly 6%. Verizon has raised its payment for 19 consecutive years.
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Verizon's dividend costs it about $11.6 billion annually. It generates plenty of cash to cover that payout. The telecom giant is on track to produce at least $21.5 billion in free cash flow this year, after funding capital expenditures of up to $16.5 billion to maintain and expand its networks. That's a 7% increase from last year. Verizon uses its surplus cash to maintain its balance sheet strength and repurchase shares (at least $3 billion planned for 2026). The company's growing free cash flow should support continued dividend increases.
Core income holdings Brookfield Infrastructure, Realty Income, and Verizon are ideal dividend stocks to buy for passive income. They generate very stable cash flow to support their high-yielding dividends and continued growth. Their combination of stable cash flows, higher-yielding dividends, growth track records, and financial strength makes them some of the first dividend stocks to buy if you're seeking to start generating some passive income.
Matt DiLallo has positions in Brookfield Infrastructure, Brookfield Infrastructure Partners, Realty Income, and Verizon Communications. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Brookfield Infrastructure Partners and Verizon Communications. The Motley Fool has a disclosure policy.
ResMed Inc (RMD) Q3 2026 Earnings Call Highlights: Strong Revenue Growth and Strategic Acquisitions ResMed Inc (RMD) reports an 11% revenue increase and strategic acquisition plans, while navigating supply chain challenges and competitive pressures. Summary
Revenue: $1.43 billion, an 11% increase year-over-year, 8% in constant currency.Gross Margin: 62.8%, increased by 290 basis points year-over-year.Operating Margin: Improved to 36.7% from 34.4% in the prior year period.Net Income: Increased by 20% year-over-year.Non-GAAP Earnings Per Share: Increased by 21% year-over-year.Free Cash Flow: $520 million, with above 100% free cash flow conversion.Cash Flow from Operations: $554 million.Cash Balance: $1.7 billion at the end of the quarter.Net Cash: $996 million.Dividend: Quarterly dividend of $0.60 per share declared.Share Repurchases: Approximately 673,000 shares repurchased for $175 million.Device Sales Growth: 6% increase globally on a constant currency basis.Masks and Other Sales Growth: 12% increase globally on a constant currency basis.Residential Care Software Revenue Growth: 4% increase on a constant currency basis.SG&A Expenses: Increased to 19.5% of revenue from 19% in the prior year period.R&D Expenses: Increased to 6.6% of revenue from 6.5% in the prior year period.Acquisition: Agreement to acquire Noctrix Health for $340 million, expected to close on June 1, 2026.
Release Date: April 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points ResMed Inc RMD reported an 11% growth in headline revenue, or 8% growth on a constant currency basis, demonstrating strong financial performance.The company achieved a 21% growth in non-GAAP earnings per share, indicating effective cost management and operational efficiency.ResMed Inc (RMD) continues to expand its global digital health ecosystem, focusing on sleep health, breathing health, and healthcare technology delivered in the home.The company is investing in innovative products, such as the AirTouch N30i mask, which has shown a 6% higher 90-day compliance rate compared to its silicone equivalent.ResMed Inc (RMD) maintains a robust balance sheet with $1.7 billion in cash and a net cash position of $996 million, providing flexibility for future investments and shareholder returns. Negative Points ResMed Inc (RMD) faces challenges with component cost inflation and geopolitical uncertainties impacting supply chain logistics.The company's Residential Care software business experienced only a 4% growth, with ongoing challenges in the senior living and long-term care verticals.There are concerns about the profitability of the new fabric masks for traditional HME providers, potentially affecting adoption rates.The acquisition of Noctrix Health is expected to reduce non-GAAP EPS by approximately $0.02 in Q4 FY26, indicating short-term financial impact.ResMed Inc (RMD) is facing competitive dynamics in the US devices segment, with new product launches from competitors potentially impacting market share. Q & A Highlights Q: Could you discuss the changes you're seeing in component costs and freight, and any supply chain changes post-COVID?
A: Michael Farrell, CEO: We're not seeing any impacts from geopolitical uncertainty on our core supply chain. We've shifted from air freight to sea freight, and our supply chain improvement pipeline remains strong. We expect gross margin accretion through 2030 despite external challenges. Brett Sandercock, CFO: We've done well with component cost improvements, but it gets tougher. We focus on productivity, platform standardization, vendor management, and logistics efficiencies to offset cost inflation.
Q: Can you provide more details on the Noctrix acquisition, its impact on SG&A and R&D, and reimbursement opportunities?
A: Michael Farrell, CEO: Noctrix Health's Nidra device for restless leg syndrome is growing faster and has higher gross margins than ResMed. We will invest in R&D and sales and marketing. Our market access team will drive reimbursement further. Brett Sandercock, CFO: We'll continue to invest in SG&A and R&D, with expected EPS dilution guidance provided earlier.
Q: What is driving the strong growth in Europe/Asia revenue, particularly in masks?
A: Michael Farrell, CEO: Our teams in Western Europe and Asia Pacific have done well with partnerships and omni-channel approaches. The AirTouch N30i fabric technology mask is changing the basis of competition, contributing to robust mask growth. Our device growth is supported by macro trends and re-PAP programs.
Q: Are there any concerns about changes in funding models, such as Synap, affecting DME customers?
A: Michael Farrell, CEO: We see Synap as similar to past utilization management efforts like CareCentrix. We believe the ROI for payers and the low cost of CPAP therapy will mitigate concerns. We work closely with payers and HMEs to manage these changes, and we don't see it as a major issue.
Q: How does the educational program for primary care physicians convert into new prescribers for CPAP therapy?
A: Michael Farrell, CEO: We target PCPs already engaged in home sleep apnea testing. The goal is to increase their referral volume. Our VirtuOx data shows a double-digit increase in home sleep testing. The program is more about increasing existing engagement rather than converting brand-new prescribers.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways RMD Q3 EPS rose 20.7% to $2.86 and beat estimates, while revenues climbed 11% to $1.43B.RMD saw growth across Sleep and Breathing Health and Residential Care Software segments.RMD expanded margins, with gross margin up 289 bps and operating margin rising to 36.7%. Resmed Inc.’s (RMD - Free Report) adjusted earnings per share (EPS) in the third quarter of fiscal 2026 were $2.86, up 20.7% year over year. The metric beat the Zacks Consensus Estimate by 2.58%.
The adjustments include certain non-recurring expenses/benefits like the amortization of acquired intangibles, along with the income tax effect on those adjustments.
GAAP EPS in the reported quarter was $2.74, up 10.5% from the year-ago level.
RMD’s Revenue DetailsOn a reported basis, revenues increased 11% year over year (up 8% at the constant exchange rate or CER) to $1.43 billion. The figure topped the Zacks Consensus Estimate by 0.79%.
Following the earnings announcement yesterday, Resmed shares dropped 2.3% in the after-market session.
Resmed’s Q3 Sales: A Closer ViewResmed operated through two reporting units — Sleep and Breathing Health (formerly Sleep and Respiratory Care) and Residential Care Software (formerly Software as a Service).
Sleep and Breathing HealthTotal revenues improved 11% (up 8% at CER) from the prior-year period’s level to $1.26 billion.
Within this business, Devices revenues were $735.7 million, up 9% (6% at CER). This includes an increase of 6% year over year in the United States, Canada and Latin America, and a jump of 14% in combined Europe, Asia and other markets.
Revenues from Masks and other were $524.8 million, up 15% (12% at CER). This includes a rise of 14% year over year in the United States, Canada and Latin America, and 20% growth in combined Europe, Asia and other markets.
Residential Care SoftwareRevenues in this segment grew 6% year over year (up 4% at CER) to $170.9 million.
Resmed’s Q3 Margin PerformanceIn the fiscal third quarter, the company’s cost of sales (excluding amortization of acquired intangible) totaled $532.6 million, up 2% year over year. Adjusted gross margin was 62.8%, reflecting an expansion of 289 basis points (bps), supported by cost improvements and manufacturing and logistics efficiencies, alongside a minor positive impact of product mix and foreign currency movements.
Selling, general and administration expenses jumped 14.1% year over year to $279.8 million. Research and development expenses increased 12.3% to $94.3 million.
The adjusted operating profit was $524.8 million in the quarter, up 18% from the year-ago quarter’s level. The adjusted operating margin expanded 224 bps year over year to 36.7%.
RMD’s Financial UpdatesResmed exited the third quarter of fiscal 2026 with cash and cash equivalents of $1.66 billion compared with $1.42 billion at the end of the second quarter.
The cumulative net cash provided by operating activities at the end of the fiscal third quarter was $554.1 million compared with $578.7 million in the year-ago period.
The company paid out $87 million in dividends in the fiscal third quarter and also repurchased 673,000 shares for consideration of $175 million as part of its ongoing capital management.
Our Take on RMD StockResmed closed the fiscal third quarter on a solid note, with both earnings and revenues beating respective estimates. Performance reflects sustained global strength, driven by steady demand for the company’s products and strategic execution. Resmed benefited from continued growth in its mask portfolio and ReSupply, as well as incremental revenues from the VirtuOx acquisition. Growth in Residential care software revenues reflects the robust performance from the MediFox Dan software vertical.
Resmed continued the global rollout of its portfolio of novel fabric-based masks and also advanced the AirSense 11 platform rollout, most recently in the Latin America market. The expansion of both margins in the quarter is highly encouraging.
RMD’s Zacks Rank and Key PicksResmed currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , Intuitive Surgical (ISRG - Free Report) and Phibro Animal Health (PAHC - Free Report) .
Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported fourth-quarter 2025 adjusted EPS of $1.28, which surpassed the Zacks Consensus Estimate by 20.8%. Revenues of $826.4 million beat the Zacks Consensus Estimate by 4.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
GMED has an earnings yield of 4.7% compared to the industry’s negative 1.4% yield. The company beat earnings estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 18.79%.
Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, posted first-quarter 2026 adjusted EPS of $2.50, exceeding the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion topped the Zacks Consensus Estimate by 6.2%.
ISRG has an earnings yield of 2.1% compared to the industry’s negative 0.9% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.82%.
Phibro Animal Health, carrying a Zacks Rank #2 at present, posted second-quarter fiscal 2026 adjusted EPS of 87 cents, exceeding the Zacks Consensus Estimate by 27.01%. Revenues of $373.9 million outperformed the Zacks Consensus Estimate by 4.72%.
PAHC has an estimated long-term earnings growth rate of 21.5% compared with the industry’s 12.1% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 20.15%.
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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
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Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
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VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.93% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
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Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: ResMed (RMD - Free Report) Resmed, Inc. holds a major position as designer, manufacturer, as well as a distributor in the worldwide market for generators, masks, and related accessories for the treatment of sleep-disordered breathing (SDB) and other respiratory disorders. SDB includes obstructive sleep apnea (OSA) and other respiratory disorders that occur during sleep.
RMD is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. RMD has a Growth Style Score of B, forecasting year-over-year earnings growth of 16.5% for the current fiscal year.
Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.09 to $11.13 per share. RMD also boasts an average earnings surprise of +3.3%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, RMD should be on investors' short list.
On May 11, 2026, ResMed Inc RMD shares fell 3.9% to a current price of $198.76. This decline comes amid broader market pressures, with the stock now trading close to its 52-week low of $198.64, significantly off its 52-week high of $293.81.
GF Value™ verdict: Current price is $198.76 versus GF Value™ of $270.01, indicating a 26.4% undervaluation.GF Score™ of 97/100 suggests a strong overall performance in key financial metrics.Notable signal: Insiders sold $4.9 million in stock over the last three months without any buying activity. Is RMD Overvalued or Undervalued? Currently, ResMed Inc RMD is trading at $198.76, which is significantly lower than its GF Value™ of $270.01. This translates to a 26.4% margin of safety, indicating that the stock is undervalued according to GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. The GF Valuation label categorizes RMD as modestly undervalued, presenting an opportunity for potential investors. However, it is essential to consider the market dynamics and recent trends that have led to a notable decline in the stock's price.
The current undervaluation could provide a favorable entry point, but prospective investors should remain cautious, especially given the recent insider selling, which may reflect concerns about the company's future performance or market conditions.
How Does RMD's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 19.2x 32.7x Forward P/E 16.4x N/A ResMed's current P/E ratio of 19.2x is 41% below its 5-year median P/E of 32.7x, suggesting that the stock is trading below its historical valuation. This analysis aligns with the GF Value™ verdict, reinforcing the notion that RMD is undervalued at its current price.
What Does RMD's GF Score™ Tell Us? Metric Rating GF Score™ 97 Financial Strength 8/10 Profitability 10/10 Growth 10/10 Valuation 8/10 Momentum 5/10 The GF Score™ of 97/100 indicates a strong overall performance, particularly in profitability and growth, where the company scored 10/10. The financial strength rating of 8/10 also reflects solid fundamentals. However, the momentum rank of 5/10 suggests that the stock is not currently performing well in terms of price movement, which could be a concern for investors looking for short-term gains.
What Are Insiders Doing with RMD Stock? In the past three months, insiders have sold $4.9 million worth of ResMed stock, with no reported buying activity. This pattern of selling could indicate a lack of confidence among insiders regarding the company's short-term outlook. While insider selling does not always predict stock performance, it may suggest that those closest to the company are cautious about its future prospects.
What This Means for Investors Based on the analysis of GF Value™, ResMed Inc RMD is currently undervalued. However, potential investors should weigh this opportunity against recent insider selling and market conditions, which may impact future performance.
For the complete analysis, visit the ResMed Inc RMD stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is RMD's GF Score™?
RMD has a GF Score™ of 97/100, indicating a strong overall performance in key financial metrics, suggesting potential for higher long-term returns.
Is RMD overvalued or undervalued?
RMD is currently undervalued, trading at $198.76 compared to its GF Value™ of $270.01, which indicates a significant margin of safety.
What is RMD's P/E ratio?
RMD's P/E (TTM) ratio is 19.2x, which is 41% below its 5-year median P/E of 32.7x, further supporting the assessment of the stock as undervalued.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Oura Members can take action on changes in sleep or breathing patterns through educational resources from Resmed and pathways for accessing care May 19, 2026 09:00 ET | Source: Resmed, Inc.
SAN DIEGO, May 19, 2026 (GLOBE NEWSWIRE) -- Resmed (NYSE: RMD, ASX: RMD), the leading health technology company focused on sleep, breathing and care delivered in the home, and ŌURA, maker of the world’s leading smart ring, today announced they are partnering to expand access to sleep health education and pathways to care, helping more people sleep better and improve their overall health.
Sleep is increasingly recognized as a key pillar of long-term health, yet it remains widely underprioritized.1 Early signs of poor sleep are often dismissed, creating a gap between what people experience and when they seek support or clinical care.
At the same time, the use of wearable technology to track sleep is on the rise, increasing from 16% of adults in 20252 to 53% in 2026.3 Insights from wearable devices, including Oura Ring, can help people better understand their sleep patterns and encourage them to have informed conversations with their healthcare providers to learn more about potential sleep disorders, including obstructive sleep apnea (OSA). OSA is a chronic condition that disrupts breathing during sleep and often goes undiagnosed. In the U.S., an estimated 80% of people with OSA remain undiagnosed and untreated.4 Resmed and Oura are partnering to help close the awareness gap, turning insight into action.
Oura Members who experience a higher number of nighttime breathing disturbances can easily connect to trusted resources from Resmed, including:
Educational resources and a sleep assessment to understand more about sleep health.The option to connect with an independent healthcare provider, virtually or in-person, to address their sleep concerns.An informative guide to support discussions with their healthcare provider.
By connecting consumer-generated wellness insights with Resmed’s sleep health resources, Resmed and Oura are helping Oura Members take a more informed next step to better understand their sleep health.
"We're at an inflection point in how people engage with their sleep health, driven by rising awareness and more accessible technology," said Dr. Carlos Nunez, chief medical officer at Resmed. "By partnering with ŌURA, we are turning insight into action by guiding people across their sleep health journey and making it easier for them to seek clinical evaluation and care if they have concerns about their sleep.”
“High-quality sleep is one of the strongest foundations for long-term health, yet many people live for years with unrecognized sleep and breathing issues," said Dr. Ricky Bloomfield, chief medical officer at Oura. “By pairing Oura’s continuous insights into sleep and nighttime breathing with Resmed’s sleep expertise, we’re giving people clearer tools and education to spot when something might be off and to more easily access care so they can better understand and act on changes in their sleep health.”
Resmed’s connection with Oura is designed to reach individuals who may not recognize their sleep issues or engage with the healthcare system, making it easier for people to learn about their sleep health and connect with clinical resources when they need it. The experience is available to users of Oura Ring Gen3 and Oura Ring 4 who have an active Oura Membership in the U.S.
About Resmed
Resmed (NYSE: RMD, ASX: RMD) creates life-changing health technologies that people love. We’re relentlessly committed to pioneering innovative technology to empower millions of people in 140 countries to live happier, healthier lives. Our AI-powered digital health solutions, cloud-connected devices and intelligent software make home healthcare more personalized, accessible and effective. Ultimately, Resmed envisions a world where every person can achieve their full potential through better sleep and breathing, with care delivered in their own home. Learn more about how we’re redefining sleep health at Resmed.com and follow @Resmed.
About ŌURA
ŌURA delivers personalized health data, insights, and daily guidance with Oura Ring, the leading smart ring that helps you live healthier, longer. Guided by a mission to shift healthcare from sick care to prevention, ŌURA supports millions of members worldwide across sleep, activity, stress, readiness, women’s health, and heart health. Scientifically validated against medical gold standards, the lightweight Oura Ring tracks 50+ health metrics continuously, empowering both individuals and thousands of research teams, healthcare providers, and organizations. With 1,000 ecosystem partners across wellness and medicine, ŌURA is advancing the future of preventative health.
Founded in Finland in 2013, ŌURA has U.S. headquarters in San Francisco and E.U. headquarters in Oulu. ŌURA was last valued at approximately $11B—making it the world’s most valuable standalone wearable company. Learn more at ouraring.com or connect with ŌURA on Instagram, LinkedIn, and TikTok.
Oura Ring is not a medical device and is not intended to diagnose, treat, cure, monitor, or prevent medical conditions or illnesses.
Contacts Resmed For MediaFor InvestorsCaela ShaySalli [email protected]@[email protected]@resmed.com Oura [email protected] 1 Resmed Global Sleep Survey 2026. Available at: sleepsurvey.resmed.com
2 Resmed Global Sleep Survey 2025. Available at: sleepsurvey.resmed.com
3 Resmed Global Sleep Survey 2026. Available at: sleepsurvey.resmed.com
4 Kapur VK, Auckley DH, Chowdhuri S, et al. Clinical Practice. Guideline for Diagnostic Testing for Adult Obstructive Sleep Apnea: An American Academy of Sleep Medicine Clinical Practice Guideline. J Clin Sleep Med. 2017
The world’s population is aging rapidly, reshaping how healthcare systems, corporations and investors approach long-term growth opportunities. According to the latest data from the World Health Organization, the number of people aged 60 and older surpassed children under five globally in 2020, marking a historic demographic turning point. The world’s population of people aged 60 years and older will double from 1 billion in 2020 to 2.1 billion in 2050. The number of persons aged 80 years or older is expected to triple between 2020 and 2050 to reach 426 million.
This demographic transition continues to unlock a multitrillion-dollar healthcare opportunity. Global Market Insights estimates the global geriatric care services market to surpass $2.1 trillion by 2034, at a CAGR of 5.1%, driven by rising life expectancy, increasing chronic disease prevalence and growing demand for home-based and digitally connected care solutions.
The aging population is significantly altering healthcare consumption patterns and creating robust growth opportunities across pharmaceuticals, robotic surgery, cardiovascular devices, obesity care, sleep health and digital monitoring technologies.
Healthcare giants such as Eli Lilly and Company (LLY - Free Report) , Tandem Diabetes Care (TNDM - Free Report) , Intuitive Surgical (ISRG - Free Report) and ResMed (RMD - Free Report) are all capitalizing on this evolving landscape. By enhancing operational efficiency, they are increasingly expanding their presence in the Seniors & Aging Demographics domain.
As longevity improves globally, age-related conditions such as obesity, cardiovascular disease, diabetes, sleep apnea, neurodegenerative disorders and musculoskeletal complications are becoming more prevalent. Digital health solutions, artificial intelligence-driven diagnostics and home-based monitoring systems are transforming elder care, creating new revenue opportunities for healthcare firms.
Notably, Medtronic’s (MDT - Free Report) AccuRhythm AI platform is being deeply embedded directly into hospital electronic health records (EHRs). The cloud-side convolutional neural networks now automatically filter out 91% of false alerts for both Atrial Fibrillation (AF) and Pause (syncope) before they ever land in a doctor's inbox, saving clinics an average of 400 hours per year. Abbott (ABT - Free Report) , on the other hand, has introduced Lingo, a wearable device that monitors multiple biomarkers, including glucose levels.
From an investment perspective, healthcare continues to offer defensive characteristics during volatile economic environments. Demand for critical treatments, medical procedures and chronic disease therapies generally remains resilient regardless of macroeconomic cycles, supporting stable cash flows and long-term earnings visibility.
Ready to uncover more transformative thematic investment ideas? Explore 30 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.
4 Seniors & Aging Demographics Stocks in the Spotlight
Eli Lilly has increasingly strengthened its position in aging-related healthcare through obesity, diabetes and neurodegenerative disease innovation. The company’s obesity franchise continues gaining momentum following the April 2026 FDA approval of Foundayo (orforglipron), the first GLP-1 oral obesity treatment that can be taken without food or water restrictions.
Lilly is also expanding its Alzheimer’s disease presence. In May 2026, the company launched its Alzheimer’s therapy Donanemab in India under the brand name Lormalzi, broadening global access to treatments designed to slow progression in early-stage Alzheimer’s disease. Beyond obesity and neuroscience, Lilly continues investing heavily in cardiometabolic diseases and chronic care therapies that disproportionately affect older adults. The stock currently carries a Zacks Rank #3 (Hold).
Tandem Diabetes continues to witness market share gains with the growing prevalence of diabetes as a major health condition in the aging population. Going by the American Diabetes Association’s data, over 29% of people over the age of 65 have diabetes. The number of older adults living with this condition is expected to increase rapidly in the coming decades.
In the near and long term, TNDM aims to strategically expand the adoption of the insulin pump by type 1 and type 2 diabetic patients across all its markets. The company’s t:slim X2 insulin pump software’s intuitive screen display has resonated strongly with Type 2 users and its 300-unit reservoir reduces the frequency of cartridge changes, helping ease the daily burden of diabetes management. Building on this positive feedback, the company has expanded its Type 2 commercial efforts, transitioning from a pilot program to full promotion of Control-IQ+ for people with Type 2 diabetes. The stock carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Intuitive Surgical continues to benefit from the rising adoption of robotic-assisted minimally invasive surgery, particularly for procedures commonly performed on older adults. The company’s da Vinci robotic surgery platform remains a leader in areas including urology, gynecology, thoracic and general surgery.
In January 2026, the FDA cleared the da Vinci 5 system for certain cardiac procedures, including mitral valve repair and cardiac revascularization-related applications. The latest-generation system incorporates advanced imaging, enhanced analytics and smart instrumentation designed to improve surgical precision and patient outcomes. Intuitive has also introduced real-time surgical insights and advanced force-feedback capabilities for da Vinci 5, leveraging data analytics and digital integration to improve operating-room efficiency and surgeon performance. The stock also carries a Zacks Rank #3.
ResMed is gaining from the growing awareness and diagnosis of sleep apnea and chronic respiratory disorders, both of which are highly prevalent among older adults. Sleep apnea affects nearly one billion people worldwide and is associated with elevated risks of cardiovascular disease, cognitive decline and metabolic disorders.
The company continues integrating artificial intelligence and digital health capabilities into its sleep-care ecosystem. In late 2025, ResMed received FDA clearance for Smart Comfort, an AI-enabled digital medical device that personalizes CPAP therapy settings using machine learning and real-world sleep data. The technology is designed to improve patient comfort and long-term therapy adherence. ResMed has also built one of the industry’s largest connected health networks, with more than 15 million cloud-connectable devices supporting remote patient monitoring and home-based care management. RMD carries a Zacks Rank #3.
SAN DIEGO, May 19, 2026 (GLOBE NEWSWIRE) -- Resmed (NYSE: RMD, ASX: RMD) today announced Mick Farrell, chairman and chief executive officer, and Aaron Bloomer, chief financial officer, will attend the 46th Annual William Blair Growth Stock Conference in Chicago, IL on Tuesday, June 2, 2026. Resmed’s webcast presentation will begin at approximately 4:40 p.m. (Central Time).
More information about this event, including access to the live, audio-only webcast, may be accessed by visiting https://investor.resmed.com. The audio-only webcast replay will be available approximately 24 hours after the live webcast ends and will be accessible for the following ninety (90) days.
About Resmed
Resmed (NYSE: RMD, ASX: RMD) creates life-changing health technologies that people love. We’re relentlessly committed to pioneering innovative technology to empower millions of people in 140 countries to live happier, healthier lives. Our AI-powered digital health solutions, cloud-connected devices and intelligent software make home healthcare more personalized, accessible and effective. Ultimately, Resmed envisions a world where every person can achieve their full potential through better sleep and breathing, with care delivered in their own home. Learn more about how we’re redefining sleep health at Resmed.com and follow @Resmed.
Investors in ResMed Inc. (RMD - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Jan. 15, 2026 $150 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for ResMed shares, but what is the fundamental picture for the company? Currently, ResMed is a Zacks Rank #3 (Hold) in the Medical – Products industry that ranks in the Bottom 35% of our Zacks Industry Rank. Over the last 30 days, one analyst has increased the earnings estimates for the to-be-reported quarter, while two have dropped the estimates. The net effect has taken our Zacks Consensus Estimate for the to-be-reported quarter from $2.86 per share to $2.85 in that period.
Given the way analysts feel about ResMed right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Picture a 55-year-old earning $400,000 with $1.5 million in a traditional 401(k). The plan’s summary plan description allows in-plan Roth conversions, and the box has sat unchecked for years. That single unchecked box is worth roughly $58,000 to $90,000 in avoided future taxes, and almost nobody at this income level is using it.
The mechanic is narrower than the better-known backdoor Roth IRA. An in-plan Roth conversion moves dollars from the traditional bucket of your 401(k) into the Roth bucket inside the same plan. The dollars stay inside the same plan, with no separate IRA, rollover, or new account involved. The plan administrator processes the conversion, issues a 1099-R coded for a taxable transfer, and the converted balance grows tax-free for life.
The Conversion Math at 55 Convert $100,000 of the traditional balance to Roth. That $100,000 lands on this year’s 1040 as ordinary income. For a household deep into the 24% bracket, with the 32% bracket starting at $403,551 for joint filers in 2026, most of the conversion sits in the 32% slice. The bill, blended with state tax aside, is about $32,000 federal in the conversion year.
Now follow the same $100,000 to age 73, when required minimum distributions begin. Eighteen years at a 7% return turns $100,000 into roughly $339,000. Inside the Roth 401(k), every dollar of that $339,000 is tax-free on withdrawal and exempt from RMDs starting in 2024 under SECURE 2.0. Left in the traditional bucket, the same $339,000 becomes RMD income taxed at whatever bracket you land in at 73, plus whatever Medicare IRMAA surcharge your two-year-lookback MAGI triggers.
The first IRMAA tier in 2026 begins at $109,000 MAGI for single filers and $218,000 for joint filers, and the surcharges scale from $81.20 per month for Part B up to $487 per month at the top tier, with Part D adders of $14.50 to $91. A 73-year-old pulling a large RMD on top of Social Security routinely walks into a 24% to 32% bracket plus an IRMAA bump, producing an effective marginal cost near 40 cents on the dollar. That is the spread the conversion captures.
How the In-Plan Conversion Differs From a Roth IRA Rollover Three features separate the in-plan conversion from a rollover to a Roth IRA:
It stays inside ERISA. The converted balance keeps the federal creditor protection of a 401(k). A Roth IRA leans on state-by-state protections that are weaker for high earners with civil exposure. No five-year clock per conversion if you are already 59½. A Roth IRA conversion starts its own five-year clock for principal access. An in-plan conversion uses the plan’s Roth account aging, so a participant past 59½ with a seasoned Roth 401(k) sub-account has cleaner liquidity. It is irreversible. SECURE 2.0 and the 2017 tax law together eliminated recharacterization for Roth conversions, including in-plan rollovers. If the market drops 30% the week after you convert, you owe the tax on the pre-drop figure. There is no undo button. Pay the Tax From Outside the Plan The $32,000 has to come from a taxable brokerage or savings account, not from the conversion itself. Pulling the tax from the 401(k) shrinks the Roth balance you just created and, if you are under 59½, layers a 10% penalty on the withheld portion. The strategy only works for people with enough non-retirement liquidity to write the check cleanly.
For households with an after-tax 401(k) contribution feature, the in-plan conversion pairs with the mega backdoor. After-tax dollars sweep into the Roth sub-account, often automatically each pay period, so growth never accrues in the after-tax bucket where it would be taxable on conversion. A $400,000 earner can stack the $24,500 employee deferral and, if age 60 to 63, an $11,250 super catch-up on top of after-tax contributions up to the overall annual additions limit.
Three Actions This Week Pull your summary plan description and search for “in-plan Roth rollover” or “in-plan Roth conversion.” If the language is absent, the feature is not available. IRS Notice 2013-74 governs the mechanics if your plan does offer it. Model the conversion amount that fills your current bracket without spilling into the next one. For joint filers, that often means converting up to the top of the 24% bracket each year through age 63, before Medicare IRMAA’s two-year lookback starts watching. Confirm you can pay the conversion tax from a taxable account. If you cannot, the conversion still works, but the math tightens considerably and a fee-only CPA review is worth the hour.
Picture a single 73-year-old retiree sitting on $1.3 million in a traditional 401(k), drawing $36,000 a year in Social Security, and feeling reasonably set for retirement. 2026 is the year required minimum distributions begin, and the IRS just handed this saver a tax bill they did not budget for. The first-year cost across federal, state, and Medicare runs close to $19,800, and almost none of it shows up on a brokerage statement.
This scenario surfaces constantly in retirement forums: someone in their early 70s who deferred taxes diligently for 40 years discovers that the deferral was a loan, and the IRS is the lender calling it in.
The RMD Math, Line by Line At age 73, the IRS Uniform Lifetime Table uses a divisor of 26.5. A $1.3 million balance divided by that figure produces a mandatory withdrawal of $49,057. That number is non-negotiable, and missing it triggers a 25% excise tax on the shortfall.
Layered on top, the RMD pushes provisional income high enough that 85% of the $36,000 Social Security benefit becomes taxable, adding roughly $30,000 to adjusted gross income. Total ordinary income lands near $85,000.
Deductions help, but only somewhat. A single 65-plus filer in 2026 gets the standard deduction of $16,100, plus the senior add-on of $2,050, plus the new $6,000 senior bonus deduction available in full while MAGI stays under $75,000 single. Stack those together and the retiree shelters $24,150 of income, leaving taxable income near $61,000.
What the Brackets Actually Take The federal bill stacks across three brackets: 10% on the first $11,925 equals $1,193, 12% on the next $36,550 equals $4,386, and 22% on the remaining $12,525 equals $2,756. Total federal liability comes in around $8,335.
That looks manageable until the rest of the cascade arrives. State income tax in most states adds another 3% to 6% on the same income. The 2026 IRMAA Medicare surcharge does not hit this filer yet because the first single bracket starts at $109,000 in MAGI, but the two-year lookback means a single bad year (selling a home, a Roth conversion, a larger RMD as the balance grows) can quietly add $1,100 to $7,000 in Part B and D premiums in 2028. Roll federal, state, and the embedded cost of higher provisional income together, and the cumulative first-year hit settles near $19,800.
The Senior Bonus Cliff Nobody Talks About The new $6,000 deduction phases out at 6 cents per dollar of MAGI above $75,000 single and disappears entirely at $175,000. This retiree sits just below the cliff, which means a portfolio rebalance, a capital gain, or a larger withdrawal in any year between 2025 and 2028 could shave or eliminate the deduction and quietly raise the effective marginal rate. Knowing where that line sits is worth real money.
Three Moves That Change the Outcome Roll the 401(k) to an IRA, then use a QCD to satisfy the RMD. Qualified charitable distributions of up to $111,000 per person in 2026 count toward the RMD but never hit AGI. For a retiree already giving to a church or charity, redirecting even $10,000 to $20,000 of the RMD as a QCD lowers taxable Social Security, preserves the senior bonus deduction, and protects future IRMAA brackets. 401(k)s cannot do this directly, only IRAs. Do partial Roth conversions in the years before 73. A saver at 65 with the same balance who converted $30,000 to $50,000 annually at the 12% bracket would have a smaller traditional balance, smaller RMDs, and a tax-free pool to draw from when IRMAA pressure builds. The window closes the moment RMDs start, because the RMD itself must come out before any conversion in the same year. Smooth the bracket in the year before RMDs begin. At 72, voluntary withdrawals filling the 12% bracket (up to roughly $48,475 of taxable income for singles) cost the same 12 cents on the dollar as the first slice of the first RMD, with no Social Security multiplier in play if benefits have been delayed. $1.3 million is plenty to retire on, provided the order in which the IRS, the SSA, and CMS take their cut gets the same attention as the portfolio itself.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: ResMed (RMD - Free Report) Resmed Inc. designs, manufactures and distributes devices, masks and related accessories used to treat sleep-disordered breathing (SDB) and other respiratory disorders. Sleep-disordered breathing includes obstructive sleep apnea and related conditions that occur during sleep. The company sells products across the United States, Canada and Latin America, and across combined Europe, Asia and other markets.
RMD is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. RMD has a Growth Style Score of B, forecasting year-over-year earnings growth of 16.5% for the current fiscal year.
For fiscal 2026, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.09 to $11.13 per share. RMD boasts an average earnings surprise of +3.3%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, RMD should be on investors' short list.
SAN DIEGO, June 01, 2026 (GLOBE NEWSWIRE) -- Resmed (NYSE: RMD, ASX: RMD), the leading health technology company focused on sleep, breathing and care delivered in the home, today announced it has completed its acquisition of Noctrix Health, Inc., a medical device company developing clinically validated wearable therapeutics for chronic neurological disorders.
The acquisition expands Resmed’s clinical sleep health portfolio into an adjacent area of significant unmet need — the treatment of Restless Legs Syndrome (RLS), the third most prevalent sleep disorder.1,2 For Noctrix Health, joining Resmed brings an opportunity to scale its innovation, expand patient access, and accelerate impact for providers, patients and health systems.
Noctrix’s Nidra® Tonic Motor Activation (TOMAC) Therapy is an FDA De Novo classified, non-invasive, non-pharmacologic treatment designed to reduce symptoms of moderate-to-severe RLS and improve sleep quality in adults who have not found sufficient relief with drug therapy.3,4 For many patients, this therapy can deliver meaningful improvement in daily life and overall sleep health. 5
Noctrix has rapidly built a strong foundation of clinical validation for its breakthrough therapy, including 10 peer-reviewed publications and inclusion in the American Academy of Sleep Medicine (AASM) clinical practice guidelines for the treatment of RLS — notable achievements that reflect both scientific validation and growing clinical adoption.
“Our acquisition of Noctrix Health marks an important step forward in advancing our 2030 strategy and expanding our clinical sleep health portfolio,” said Mick Farrell, Chairman and CEO of Resmed. “We are excited to welcome the Noctrix team to Resmed and scale solutions that improve lives through better sleep and home health technologies.”
Resmed plans to integrate Noctrix’s technology into its portfolio of connected devices and digital health solutions to help expand access, improve care pathways and enhance patient outcomes over time.
“Since founding Noctrix, our mission has been to deliver innovative, non-pharmacologic solutions for people living with RLS who have limited treatment options,” said Shri Raghunathan, President and CEO of Noctrix Health. “Joining Resmed will help us advance that mission, enabling us to expand access to TOMAC therapy and reach more patients with a clinically validated solution that can help meaningfully improve sleep and quality of life.”
Completion of Acquisition
Resmed’s acquisition of Noctrix Health, Inc. was previously announced on April 30, 2026, during Resmed’s Q3 FY26 earnings call. Upon completion of the acquisition today, Noctrix became a wholly owned subsidiary within the Resmed group.
About Resmed
Resmed (NYSE: RMD, ASX: RMD) creates life-changing health technologies that people love. We’re relentlessly committed to pioneering innovative technology to empower millions of people in 140 countries to live happier, healthier lives. Our AI-powered digital health solutions, cloud-connected devices and intelligent software make home healthcare more personalized, accessible and effective. Ultimately, Resmed envisions a world where every person can achieve their full potential through better sleep and breathing, with care delivered in their own home. Learn more at Resmed.com and follow @Resmed.
1 McArdle N, et al. Prevalence of common sleep disorders in a middle-aged community sample. J Clin Sleep Med. 2022;18:1503–1514. (Identifies insomnia, obstructive sleep apnea, and RLS as among the most common sleep disorders).
2 Winkelman JW, Wipper B. Restless Legs Syndrome: A Review. JAMA. 2026;335(8):703–714. (~8% of adults report RLS symptoms; associated with sleep disturbance and reduced quality of life).
3 U.S. Food and Drug Administration. De Novo Classification Request: NTX100 Tonic Motor Activation System (DEN220059). 2023. (Device indicated to reduce symptoms of moderate-to-severe RLS and improve sleep quality in adults refractory to medications).
4 Ryschon AM, et al. Cost-Effectiveness of Tonic Motor Activation Therapy for RLS. Neurology and Therapy. 2023. (Identifies TOMAC as a nonpharmacologic treatment for medication-refractory RLS).
5 Winkelman JW, Wipper B. Restless Legs Syndrome: A Review. JAMA. 2026;335(8):703–714. (~8% of adults report RLS symptoms; associated with sleep disturbance and reduced quality of life).
Noctrix Health acquisition validates Angelini Ventures’ strategy of investing in innovative healthcare companies addressing significant unmet medical needs and advancing connected health
Rome, Italy, 3rd June 2026 – Angelini Ventures, the corporate venture firm of Angelini Industries focused on investing in companies developing innovative solutions in BioTech and HealthTech, announces that portfolio company Noctrix Health has been acquired by ResMed (NYSE: RMD), a global leader in sleep health and respiratory care, in a transaction valued at $340 million.
The transaction further strengthens Angelini Ventures’ mission to support the next generation of healthcare innovators, combining capital with strategic expertise, operational capabilities and a global network of founders, investors and academic partners. It also reinforces Angelini Ventures’ strategy of backing differentiated healthcare technologies that address significant unmet medical needs and enable more connected and scalable models of care. Through ResMed’s planned integration of Noctrix Health’s technology into its broader sleep health ecosystem, the acquisition has the potential to expand patient access and enhance the delivery of care.
Founded in 2016, Noctrix Health is a medical technology company focused on developing wearable, clinically validated neuromodulation therapies for chronic neurological and sleep-related conditions. Its lead product, Nidra, is the first FDA-authorized non-invasive therapy for moderate-to-severe Restless Legs Syndrome (RLS), offering a differentiated treatment option for millions of patients affected by the condition globally.
Angelini Ventures invested in Noctrix Health in 2024 as part of the company’s $40 million Series C financing round, alongside leading healthcare investors, supporting the company’s next phase of clinical and commercial growth.
“This marks our first successful exit, reaffirming our strategy of backing disruptive healthcare companies with the potential to address significant unmet medical needs,” said Paolo Di Giorgio, CEO and Managing Director of Angelini Ventures. “Noctrix Health exemplifies the type of company we seek to support - combining cutting-edge science, technological innovation and clear clinical relevance. We are delighted to see that the company’s technology will become integrated into ResMed’s broader connected health ecosystem, creating new opportunities to expand patient access and impact at scale.”
“It has been a privilege to partner with the Noctrix team during such a pivotal phase of the company’s growth,” added Tanja Dowe, Managing Director at Angelini Ventures and Board Observer at Noctrix Health prior to the acquisition. “The speed and quality of execution across clinical development, regulatory approval and commercialization have been exceptional. We are proud to have supported the company as it advanced a first-in-class therapy for patients with Restless Legs Syndrome.”
Sergio Marullo di Condojanni, CEO of Angelini Industries, commented: “This milestone further reflects Angelini Industries’ commitment to support scientific and technological innovation capable of generating meaningful impact for patients and healthcare systems worldwide. Noctrix represents a compelling example of how breakthrough healthcare innovation can evolve into scalable solutions with global relevance.”
***
Notes to Editors
About Angelini Ventures
Angelini Ventures is a global venture capital firm and part of Angelini Industries, a leading Italian multi-sector industrial group. Launched in 2022 with an initial €300 million capital commitment, the firm invests in companies developing breakthrough solutions in biotechnology, medtech, and digital health. To date, Angelini Ventures has built a portfolio of 25 companies across Europe and North America dedicated to extending life expectancy and improving patient outcomes. In December 2025, the firm expanded its impact through a €150 million co-financing partnership with the European Investment Bank. Angelini Ventures is headquartered in Rome, with a strategic presence in Singapore and Boston, and employs a team of over 20 professionals located across key life sciences hubs in Europe, Asia, and North America. www.angeliniventures.com
Contacts
Angelini Ventures
Martina Palmese, Communications Coordinator [email protected]
Media contacts for Italy - SEC Newgate Italia
Daniele Pinosa, [email protected]; Tel. +39 3357233872
Fausta Tagliarini; [email protected]; Tel. +39 3476474513
Daniele Murgia; [email protected]; Tel. +39 3384330031
Media contacts outside Italy - MEDiSTRAVA
Sylvie Berrebi, Sandi Greenwood, Mark Swallow [email protected]
On June 04, 2026, ResMed Inc RMD shares rose 4.2% today, currently trading at $194.32. The stock has seen a 52-week range between $180.27 and $293.81, highlighting significant volatility over the past year. This recent uptick comes amidst a year-to-date decline of 18.9% and a one-year drop of 21.5%.
GF Value™ verdict: Current price of $194.32 is 28.4% below GF Value™ of $271.26, indicating potential upside.GF Score™ of 90/100 suggests strong overall performance and a promising outlook.Notable signal: Insider activity shows that insiders sold $4.6M in stock over the past three months, with no buying reported. Is RMD Overvalued or Undervalued? According to the GF Value™, ResMed Inc is currently undervalued, with a significant margin of safety. The current price of $194.32 is substantially below the estimated fair value of $271.26, leading to an undervaluation of approximately 28.4%. This presents an opportunity for potential investors, as the stock is classified under the GF Valuation label as "Modestly Undervalued." GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
The undervaluation signals potential growth opportunities, yet investors should remain cautious due to recent insider selling activity, which may indicate a lack of confidence from those closest to the company. Overall, while the undervaluation presents a buying opportunity, it is essential to consider the broader market conditions and insider sentiments.
How Does RMD's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 18.7x 32.4x Forward P/E 16.0x N/A ResMed's current P/E ratio of 18.7x is significantly below its 5-year median P/E of 32.4x, suggesting that the stock is trading at a lower valuation compared to its historical performance. The forward P/E of 16.0x further reinforces this observation, indicating that the market expects a rebound in earnings. This analysis aligns with the GF Value™ verdict, confirming the stock's undervaluation relative to its historical valuation metrics.
What Does RMD's GF Score™ Tell Us? Metric Rating GF Score™ 90/100 Financial Strength 7/10 Profitability 10/10 Growth 10/10 Valuation 4/10 Momentum 4/10 The GF Score™ of 90/100 indicates a strong overall performance, with notable strengths in Profitability and Growth, both rated at 10/10. These high scores suggest that ResMed has a robust business model and is likely to generate strong returns. However, the Valuation and Momentum ranks, both at 4/10, highlight potential weaknesses in the current market perception and recent stock performance. Together, the scores offer a comprehensive view of the company's strengths and areas requiring attention.
What Are Insiders Doing with RMD Stock? Insider activity in ResMed Inc has shown a trend of selling, with insiders having sold $4.6 million worth of shares in the last three months. This lack of buying may indicate caution among those with the most intimate knowledge of the company. Such selling activity could suggest that insiders are not optimistic about the stock's short-term prospects. However, it is important to consider that insider selling does not necessarily reflect the overall value proposition of the company.
What This Means for Investors Based on the GF Value™ analysis, ResMed Inc is currently undervalued, presenting a potential investment opportunity. However, investors should weigh this against recent insider selling and the broader market conditions before making any decisions.
For the complete analysis, visit the ResMed Inc RMD stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is RMD's GF Score™?
The GF Score™ for ResMed Inc is 90/100, indicating strong overall performance and a promising outlook for long-term returns.
Is RMD overvalued or undervalued?
RMD is currently undervalued according to GF Value™, with a market price that is approximately 28.4% below its estimated fair value.
What is RMD's P/E ratio?
RMD's P/E ratio (TTM) is 18.7x, which is significantly below its 5-year median P/E of 32.4x, indicating that the stock is trading at a lower valuation compared to its historical performance.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways RMD benefits from acquisition-led Residential Care Software expansion and mask innovation.RMD Residential Care Software revenues rose 4% CC, driven by MEDIFOX DAN, Home & Hospice, HME.Mask sales in the Americas rose 14%, while RMD maintains $1.66B cash and 5.9% debt-to-capital. Resmed (RMD - Free Report) benefits from the acquisition-led expansion of its Residential Care Software segment, which is poised to continue supporting its growth in the coming quarters. The company continues to expand its mask portfolio through product innovation and targeted initiatives that support resupply. Solid financial health further adds to the stock’s appeal. Yet, headwinds from macroeconomic pressures and intense competition may present operational risks for Resmed.
Over the past year, this Zacks Rank #3 (Hold) stock has dropped 23.6% compared with the 29.6% decline of the industry and the S&P 500 Composite’s 25.9% growth.
The renowned medical device company has a market capitalization of $28.44 billion. RMD has an earnings yield of 5.7% compared with the industry’s yield of 3.2%. RMD’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 3.26%.
Let’s delve deeper.
Upsides for RMD StockStrategic Pacts to Boost Residential Care Software Business: The Residential Care Software business remains a key synergistic enabler of Resmed’s Sleep and Breathing Health franchise. The company has historically used strategic buyouts to expand its SaaS footprint, including MEDIFOX DAN in 2022 to enter Germany. In 2018, RMD acquired HEALTHCAREfirst, while the addition of MatrixCare broadened its exposure to skilled nursing and senior living.
Image Source: Zacks Investment Research
In 2016, Resmed acquired Brightree to strengthen its connected healthcare software capabilities. The segment continues to show steady underlying demand in select verticals. In the third quarter of fiscal 2026, Residential Care Software revenues increased 4% on a constant-currency basis, driven by growth in the MEDIFOX DAN, Home and Hospice, and HME verticals, partially offset by weaker performance in Senior Living and Long-Term Care.
Mask Innovation and Resupply: Resmed has been a consistent innovator in small nasal, nasal pillows and full-face masks, improving patient comfort while reducing size and weight. The company continues to broaden its AirFit and AirTouch platforms and launch new designs that address fit, leak and adherence — all critical to long-term therapy usage.
Resmed also remains focused on expanding the mask portfolio with new platforms and driving mask resupply through education, awareness and execution across provider and direct-to-consumer channels. This resupply focus supports recurring revenues and helps the company retain patients as they move through the care pathway. In the third quarter of fiscal 2026, Americas masks and other sales increased 14%, reflecting continued growth in both the mask portfolio and resupply and incremental revenues from VirtuOx, which ResMed acquired in the fourth quarter of fiscal 2025.
Financial Flexibility: Resmed exited the third quarter of fiscal 2026 with $1.66 billion in cash and cash equivalents while maintaining a modest leverage profile. Short-term debt was $260 million, and long-term debt was $404 million at quarter-end. The company’s debt-to-capital ratio improved 0.1% sequentially to 5.9%, reflecting relatively contained balance sheet risk compared with many med-tech peers.
What Ails Resmed?Macroeconomic Sensitivity: Resmed remains exposed to macroeconomic conditions, geopolitical instability, and the impact of tariffs and trade actions on its suppliers and input costs. These factors can weigh on demand, influence pricing and raise operating costs through higher freight, labor or component expenses, while currency volatility can also affect reported results.
Competitive Landscape: The market for sleep-disordered breathing (SDB) is highly competitive on product price, features, reliability and supply performance. The disparity between Resmed’s resources and those of some competitors can widen as the healthcare industry consolidates, and large providers and payers increase purchasing leverage. Certain competitors are affiliated with customers, which can make it harder for Resmed to defend its share in specific channels. Competition can intensify as supply availability improves and providers reassess purchasing decisions, which can lead to pricing pressure in devices, masks and accessories, and can increase the cost of retaining accounts.
RMD Stock’s Estimate TrendThe Zacks Consensus Estimate for RMD’s fiscal 2026 earnings per share (EPS) has improved 0.4% to $11.13 in the past 60 days.
The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $5.65 billion, up 9.8% from the year-ago reported figure.
Key PicksSome better-ranked stocks in the broader medical space are Globus Medical (GMED - Free Report) , Align Technology (ALGN - Free Report) and Integra LifeSciences (IART - Free Report) .
Globus Medical has an earnings yield of 5.9% compared to the industry’s negative 3.2% yield. Its earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 26.3%. GMED shares have rallied 27.4% against the industry’s 6% fall over the past year.
GMED sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Align Technology, sporting a Zacks Rank #1, has an estimated long-term earnings growth rate of 10.3% compared with the industry’s 9.6% growth. Shares of the company have dropped 8.5% against the industry’s 6.4% rise. ALGN’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 7.8%.
Integra LifeSciences, carrying a Zacks Rank #2 (Buy), has an earnings yield of 14.2% against the industry’s negative 3.2% yield. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 16.7%. IART shares have rallied 21.2% against the industry’s 5.9% decline over the past year.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
SG Americas Securities LLC grew its holdings in shares of Apple Hospitality REIT, Inc. (NYSE:APLE – Free Report) by 91.9% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 109,512 shares of the real estate investment trust’s stock after purchasing an additional 52,446 shares during the period. SG Americas Securities LLC’s holdings in Apple Hospitality REIT were worth $1,298,000 as of its most recent SEC filing.
A number of other institutional investors and hedge funds also recently bought and sold shares of APLE. Centerbridge Partners L.P. acquired a new position in shares of Apple Hospitality REIT during the second quarter worth about $22,147,000. UBS Group AG grew its position in shares of Apple Hospitality REIT by 94.3% during the third quarter. UBS Group AG now owns 2,935,463 shares of the real estate investment trust’s stock worth $35,255,000 after buying an additional 1,424,287 shares in the last quarter. Norges Bank acquired a new position in shares of Apple Hospitality REIT during the second quarter worth about $15,614,000. Arrowstreet Capital Limited Partnership grew its position in shares of Apple Hospitality REIT by 285.3% during the second quarter. Arrowstreet Capital Limited Partnership now owns 1,350,787 shares of the real estate investment trust’s stock worth $15,764,000 after buying an additional 1,000,214 shares in the last quarter. Finally, Millennium Management LLC grew its position in shares of Apple Hospitality REIT by 763.8% during the third quarter. Millennium Management LLC now owns 648,487 shares of the real estate investment trust’s stock worth $7,788,000 after buying an additional 573,410 shares in the last quarter. 89.66% of the stock is currently owned by hedge funds and other institutional investors.
Wall Street Analysts Forecast Growth A number of brokerages have recently commented on APLE. Barclays lowered their price objective on Apple Hospitality REIT from $14.00 to $13.00 and set an “overweight” rating for the company in a research report on Tuesday. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $14.00 price target on shares of Apple Hospitality REIT in a report on Tuesday, March 3rd. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Apple Hospitality REIT in a report on Friday, December 26th. Wells Fargo & Company lowered their price target on Apple Hospitality REIT from $13.00 to $12.00 and set an “equal weight” rating for the company in a report on Tuesday, March 24th. Finally, LADENBURG THALM/SH SH began coverage on Apple Hospitality REIT in a report on Thursday, March 26th. They issued a “neutral” rating and a $13.00 price target for the company. Three equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $12.64.
Check Out Our Latest Report on Apple Hospitality REIT
Apple Hospitality REIT Stock Performance Shares of APLE opened at $11.65 on Wednesday. The stock has a 50 day moving average price of $11.98 and a 200 day moving average price of $11.92. The company has a quick ratio of 0.40, a current ratio of 0.40 and a debt-to-equity ratio of 0.52. The company has a market capitalization of $2.74 billion, a price-to-earnings ratio of 15.74 and a beta of 0.82. Apple Hospitality REIT, Inc. has a 52-week low of $10.44 and a 52-week high of $13.27.
Apple Hospitality REIT (NYSE:APLE – Get Free Report) last announced its quarterly earnings results on Monday, February 23rd. The real estate investment trust reported $0.13 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.29 by ($0.16). The business had revenue of $326.44 million during the quarter, compared to analyst estimates of $322.60 million. Apple Hospitality REIT had a net margin of 12.42% and a return on equity of 5.50%. Research analysts predict that Apple Hospitality REIT, Inc. will post 1.6 EPS for the current fiscal year.
Apple Hospitality REIT Announces Dividend The company also recently disclosed a monthly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st will be issued a $0.08 dividend. This represents a c) annualized dividend and a dividend yield of 8.2%. The ex-dividend date of this dividend is Tuesday, March 31st. Apple Hospitality REIT’s dividend payout ratio is presently 129.73%.
Apple Hospitality REIT Profile (Free Report)
Apple Hospitality REIT (NYSE: APLE) is a publicly traded real estate investment trust that focuses on acquiring, owning and operating high-quality, upscale, select-service hotels. The company’s portfolio primarily consists of properties operated under premium franchise agreements with leading lodging brands such as Marriott, Hilton and Hyatt. Apple Hospitality REIT is self-managed and internally advised, overseeing property management, revenue optimization and asset-level operations through its in-house team of hospitality professionals.
The company’s holdings encompass over 200 hotels featuring more than 30,000 guest rooms across a diverse array of markets in the United States.
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The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Apple Hospitality REIT (APLE - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Finance sector should help us answer this question.
Apple Hospitality REIT is a member of the Finance sector. This group includes 837 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Apple Hospitality REIT is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for APLE's full-year earnings has moved 1.4% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that APLE has returned about 1.4% since the start of the calendar year. In comparison, Finance companies have returned an average of -2.7%. This shows that Apple Hospitality REIT is outperforming its peers so far this year.
Ares Commercial Real Estate (ACRE - Free Report) is another Finance stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 3.1%.
Over the past three months, Ares Commercial Real Estate's consensus EPS estimate for the current year has increased 92.2%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Apple Hospitality REIT is a member of the REIT and Equity Trust - Other industry, which includes 91 individual companies and currently sits at #56 in the Zacks Industry Rank. This group has gained an average of 5.8% so far this year, so APLE is slightly underperforming its industry in this area.
In contrast, Ares Commercial Real Estate falls under the REIT and Equity Trust industry. Currently, this industry has 27 stocks and is ranked #162. Since the beginning of the year, the industry has moved -3%.
Investors with an interest in Finance stocks should continue to track Apple Hospitality REIT and Ares Commercial Real Estate. These stocks will be looking to continue their solid performance.
Shares of Apple Hospitality REIT, Inc. (NYSE:APLE – Get Free Report) have been given an average rating of “Hold” by the eight ratings firms that are covering the stock, Marketbeat.com reports. Five research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. The average 12 month price target among brokerages that have covered the stock in the last year is $12.6429.
Several equities research analysts have recently weighed in on APLE shares. Wells Fargo & Company reduced their target price on shares of Apple Hospitality REIT from $13.00 to $12.00 and set an “equal weight” rating on the stock in a research note on Tuesday, March 24th. Weiss Ratings reissued a “hold (c)” rating on shares of Apple Hospitality REIT in a research note on Friday, December 26th. Cantor Fitzgerald reissued an “overweight” rating and issued a $14.00 target price on shares of Apple Hospitality REIT in a research note on Tuesday, March 3rd. LADENBURG THALM/SH SH started coverage on shares of Apple Hospitality REIT in a research note on Thursday, March 26th. They issued a “neutral” rating and a $13.00 target price on the stock. Finally, Barclays reduced their target price on shares of Apple Hospitality REIT from $14.00 to $13.00 and set an “overweight” rating on the stock in a research note on Tuesday, April 7th.
View Our Latest Research Report on APLE
Apple Hospitality REIT Trading Up 3.1% Shares of APLE opened at $13.00 on Friday. Apple Hospitality REIT has a twelve month low of $10.85 and a twelve month high of $13.27. The company has a market cap of $3.07 billion, a P/E ratio of 17.56 and a beta of 0.82. The company has a current ratio of 0.40, a quick ratio of 0.40 and a debt-to-equity ratio of 0.52. The company’s fifty day simple moving average is $12.09 and its 200-day simple moving average is $11.94.
Apple Hospitality REIT (NYSE:APLE – Get Free Report) last announced its earnings results on Monday, February 23rd. The real estate investment trust reported $0.13 earnings per share for the quarter, missing the consensus estimate of $0.29 by ($0.16). Apple Hospitality REIT had a net margin of 12.42% and a return on equity of 5.50%. The firm had revenue of $326.44 million during the quarter, compared to analysts’ expectations of $322.60 million. As a group, analysts expect that Apple Hospitality REIT will post 1.6 EPS for the current year.
Apple Hospitality REIT Dividend Announcement The business also recently declared a monthly dividend, which was paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st were paid a $0.08 dividend. This represents a c) annualized dividend and a yield of 7.4%. The ex-dividend date of this dividend was Tuesday, March 31st. Apple Hospitality REIT’s dividend payout ratio (DPR) is currently 129.73%.
Institutional Inflows and Outflows Several institutional investors have recently added to or reduced their stakes in the stock. State Street Corp increased its stake in Apple Hospitality REIT by 0.5% in the 4th quarter. State Street Corp now owns 12,962,856 shares of the real estate investment trust’s stock worth $154,627,000 after buying an additional 68,794 shares during the period. Fuller & Thaler Asset Management Inc. increased its stake in Apple Hospitality REIT by 1.8% in the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 7,107,802 shares of the real estate investment trust’s stock worth $84,227,000 after buying an additional 127,327 shares during the period. UBS Group AG increased its stake in Apple Hospitality REIT by 60.8% in the 4th quarter. UBS Group AG now owns 4,721,481 shares of the real estate investment trust’s stock worth $55,950,000 after buying an additional 1,786,018 shares during the period. Charles Schwab Investment Management Inc. increased its stake in Apple Hospitality REIT by 2.7% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 4,714,872 shares of the real estate investment trust’s stock worth $55,871,000 after buying an additional 125,759 shares during the period. Finally, Centerbridge Partners L.P. increased its stake in Apple Hospitality REIT by 88.2% in the 4th quarter. Centerbridge Partners L.P. now owns 4,229,785 shares of the real estate investment trust’s stock worth $50,123,000 after buying an additional 1,982,000 shares during the period. Hedge funds and other institutional investors own 89.66% of the company’s stock.
About Apple Hospitality REIT (Get Free Report)
Apple Hospitality REIT (NYSE: APLE) is a publicly traded real estate investment trust that focuses on acquiring, owning and operating high-quality, upscale, select-service hotels. The company’s portfolio primarily consists of properties operated under premium franchise agreements with leading lodging brands such as Marriott, Hilton and Hyatt. Apple Hospitality REIT is self-managed and internally advised, overseeing property management, revenue optimization and asset-level operations through its in-house team of hospitality professionals.
The company’s holdings encompass over 200 hotels featuring more than 30,000 guest rooms across a diverse array of markets in the United States.
Read More Five stocks we like better than Apple Hospitality REIT
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RICHMOND, Va.--(BUSINESS WIRE)--Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or “Apple Hospitality”) today announced that its Board of Directors declared a regular monthly cash distribution of $0.08 per common share. The distribution is payable on May 15, 2026, to shareholders of record as of April 30, 2026.
Based on the Company’s common stock closing price of $13.00 on April 17, 2026, the annualized distribution of $0.96 per common share represents an annual yield of approximately 7.4%.
About Apple Hospitality REIT, Inc.
Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust (“REIT”) that owns one of the largest and most diverse portfolios of upscale, rooms-focused hotels in the United States. Apple Hospitality’s portfolio consists of 217 hotels with approximately 29,600 guest rooms located in 84 markets throughout 37 states and the District of Columbia. Concentrated with industry-leading brands, the Company’s hotel portfolio consists of 96 Marriott-branded hotels, 115 Hilton-branded hotels, five Hyatt-branded hotels and one independent hotel. For more information, please visit www.applehospitalityreit.com.
Forward-Looking Statements Disclaimer
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are typically identified by use of statements that include phrases such as “may,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “target,” “goal,” “plan,” “should,” “will,” “predict,” “potential,” “outlook,” “strategy,” and similar expressions that convey the uncertainty of future events or outcomes. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.
Such factors include, but are not limited to, the ability of the Company to effectively acquire and dispose of properties and redeploy proceeds; the anticipated timing and frequency of shareholder distributions; the ability of the Company to fund capital obligations; the ability of the Company to successfully integrate pending transactions and implement its operating strategy; changes in general political, economic and competitive conditions and specific market conditions (including the potential effects of tariffs, inflation or a recessionary environment); reduced business and leisure travel due to geopolitical uncertainty, including terrorism and acts of war; travel-related health concerns, including widespread outbreaks of infectious or contagious diseases in the U.S.; inclement weather conditions, including natural disasters such as hurricanes, earthquakes and wildfires; government shutdowns, airline strikes or equipment failures or other disruptions; adverse changes in the real estate and real estate capital markets; financing risks; changes in interest rates; litigation risks; regulatory proceedings or inquiries; and changes in laws or regulations or interpretations of current laws and regulations that impact the Company’s business, assets or classification as a REIT. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore there can be no assurance that such statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the results or conditions described in such statements or the objectives and plans of the Company will be achieved. In addition, the Company’s qualification as a REIT involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986, as amended. Readers should carefully review the risk factors described in the Company’s filings with the Securities and Exchange Commission, including, but not limited to, those discussed in the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Any forward-looking statement that the Company makes speaks only as of the date of this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements or cautionary factors, as a result of new information, future events, or otherwise, except as required by law.
For additional information or to receive press releases by email, visit www.applehospitalityreit.com.
Apple Hospitality REIT boasts a youthful, rooms-focused portfolio with high EBITDA margins and a robust, low-leverage balance sheet. APLE offers a well-covered 7.4% dividend yield, supported by a conservative 63% payout ratio and strong liquidity. Earnings have declined for two years, with 2026 guidance projecting further EBITDA and MFFO contraction, limiting near-term upside.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Apple Hospitality REIT (APLE - Free Report) . APLE is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.39. This compares to its industry's average Forward P/E of 16.35. APLE's Forward P/E has been as high as 9.93 and as low as 6.69, with a median of 8.64, all within the past year.
We should also highlight that APLE has a P/B ratio of 0.93. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. APLE's current P/B looks attractive when compared to its industry's average P/B of 1.90. Within the past 52 weeks, APLE's P/B has been as high as 1.19 and as low as 0.79, with a median of 0.98.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. APLE has a P/S ratio of 2.17. This compares to its industry's average P/S of 4.
Finally, investors should note that APLE has a P/CF ratio of 7.96. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 16.18. Over the past year, APLE's P/CF has been as high as 9.97 and as low as 6.68, with a median of 8.20.
These are just a handful of the figures considered in Apple Hospitality REIT's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that APLE is an impressive value stock right now.
For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Bank of Montreal (BMO - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.
Bank of Montreal is one of 835 individual stocks in the Finance sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Bank of Montreal is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for BMO's full-year earnings has moved 4.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, BMO has returned 17.2% so far this year. In comparison, Finance companies have returned an average of -0.9%. This shows that Bank of Montreal is outperforming its peers so far this year.
Another Finance stock, which has outperformed the sector so far this year, is Apple Hospitality REIT (APLE - Free Report) . The stock has returned 11.3% year-to-date.
The consensus estimate for Apple Hospitality REIT's current year EPS has increased 0.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Bank of Montreal belongs to the Banks - Foreign industry, which includes 66 individual stocks and currently sits at #156 in the Zacks Industry Rank. Stocks in this group have gained about 1.9% so far this year, so BMO is performing better this group in terms of year-to-date returns.
On the other hand, Apple Hospitality REIT belongs to the REIT and Equity Trust - Other industry. This 91-stock industry is currently ranked #54. The industry has moved +9.1% year to date.
Investors interested in the Finance sector may want to keep a close eye on Bank of Montreal and Apple Hospitality REIT as they attempt to continue their solid performance.
Key Takeaways SCVL, AHKSY, APLE, PAM and FAF are highlighted as low price-to-sales stocks with upside potential.The piece explains P/S as market cap vs. revenues, useful when earnings are minimal, volatile or negative.It warns low P/S can mask high debt; suggests checking P/E, P/B and debt-to-equity before buying. Investing in stocks based on valuation metrics is a proven strategy for identifying opportunities with strong upside potential. While the price-to-earnings (P/E) ratio is a popular tool for gauging value, it has its limitations, especially when evaluating companies that are unprofitable or still in their early growth phases.
In such cases, the price-to-sales (P/S) ratio becomes particularly valuable. By comparing a company’s market capitalization to its revenues, the P/S ratio offers a clearer picture of value when earnings are minimal or volatile.
If you are looking for growth at a discount, low P/S stocks can offer compelling opportunities. These stocks often trade below their intrinsic value, making them attractive to investors seeking upside potential without paying a premium. While the P/S ratio alone does not guarantee success, when combined with strong fundamentals and positive business momentum, it can signal a stock poised for a breakout.
Shoe Carnival (SCVL - Free Report) , Asahi Kasei Corporation (AHKSY - Free Report) , Apple Hospitality REIT, Inc. (APLE - Free Report) , Pampa Energia S.A. (PAM - Free Report) and First American Financial Corporation (FAF - Free Report) are some companies with low price-to-sales ratios and the potential to offer higher returns.
What Is the Price-to-Sales Ratio?While a loss-making company with a negative price-to-earnings ratio falls out of investor favor, its price-to-sales can indicate the hidden strength of the business. This underrated ratio is also used to identify a recovery situation or ensure a company's growth is not overvalued.
A stock’s price-to-sales ratio reflects how much investors pay for each dollar of revenue generated by a company.
If the price-to-sales ratio is 1, investors are paying $1 for every $1 of revenues generated by the company. A stock with a price-to-sales ratio below 1 is a good bargain, as investors need to pay less than a dollar for a dollar’s worth.
Thus, a stock with a lower price-to-sales ratio is a more suitable investment than a stock with a high price-to-sales ratio.
The price-to-sales ratio is often preferred over price-to-earnings, as companies can manipulate their earnings using various accounting measures. However, sales are harder to manipulate and are relatively reliable.
However, one should keep in mind that a company with high debt and a low price-to-sales ratio is not an ideal choice. The high debt level will have to be paid off at some point, leading to further share issuance, a rise in market cap and a higher price-to-sales ratio.
In any case, the price-to-sales ratio used in isolation cannot do the trick. One should analyze other ratios like Price/Earnings, Price/Book and Debt/Equity before arriving at any investment decision.
Screening ParametersPrice-to-Sales less than the Median Price-to-Sales for its Industry: The lower the price-to-sales ratio, the better.
Price-to-Earnings using F(1) estimate less than the Median Price-to-Earnings for its Industry: The lower, the better.
Price-to-Book (Common Equity) less than the Median Price-to-Book for its Industry: This is another parameter to ensure the value feature of a stock.
Debt-to-Equity (Most Recent) less than the Median Debt-to-Equity for its Industry: A company with less debt should have a stable price-to-sales ratio.
Current Price greater than or equal to $5: The stocks must be trading at a minimum of $5 or higher.
Zacks Rank less than or equal to #2 (Buy): Zacks Rank #1 (Strong Buy) or #2 stocks are known to outperform, irrespective of the market environment.
Value Score less than or equal to B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank 1 or 2, offer the best opportunities in the value investing space.
Here are five of the 22 stocks that qualified the screening:
Shoe Carnival operates as a family footwear retailer in the United States, offering dress, casual, athletic and seasonal footwear for men, women and children. The company is undergoing a disciplined transformation to strengthen fundamentals and long-term profitability. Its “rebanner” strategy is shifting the mix toward the higher-end Shoe Station banner, attracting more affluent consumers and premium brands, while reducing the reliance on value-focused shoppers.
With margin discipline, a debt-free balance sheet and strong cash flow, Shoe Carnival is investing in growth and store conversions. As Shoe Station expands, SCVL is evolving into a more resilient, diversified and profitable footwear retailer. SCVL currently has a Zacks Rank #2 and a Value Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tokyo, Japan-based Asahi Kasei is a diversified industrial group operating across materials, homes and healthcare. The company produces petrochemicals, battery separators, electronics materials and fibers, while also building residential homes and providing construction solutions. Its healthcare segment includes pharmaceuticals, medical devices and critical care products, supporting stable long-term growth.
Asahi Kasei benefits from exposure to electric vehicle batteries, semiconductor demand and aging demographics in healthcare. However, earnings can be sensitive to cyclical chemical demand and raw material costs. Overall, the company combines defensive healthcare revenues with growth opportunities in advanced materials and sustainability-focused innovations. AHKSY has a Value Score of A and a Zacks Rank of 2 at present.
Apple Hospitality is a publicly traded real estate investment trust that owns the largest and most diverse portfolio of upscale, room-focused hotels in the United States. The company offers a fundamentally sound lodging REIT story built on portfolio quality, brand alignment and disciplined execution. It owns a geographically diversified collection of room-focused hotels affiliated with leading brands, giving it broad exposure to leisure, corporate and group demand.
Management has demonstrated prudent capital allocation through selective acquisitions, timely dispositions and consistent reinvestment to keep properties competitive. A flexible balance sheet and ample liquidity provide resilience across cycles. While recent demand softness weighed on its performance, leisure trends remain supportive and operational agility positions the portfolio to benefit as business travel normalizes, supporting long-term cash flow stability and shareholder returns. APLE has a Value Score of B and a Zacks Rank of 2 at present.
Buenos Aires, Argentina-based Pampa Energia is an independent energy-integrated company in Argentina. Through its subsidiaries, PAM is engaged in the generation, transmission and distribution of electricity in Argentina. The company operates through the Electricity Generation, Oil and Gas, Petrochemicals, and Holding and Other Business segments. It generates electricity through thermal generation plants, thermal gas-fired generation plants and hydroelectric power generation systems, as well as a wind farm.
The company also explores and produces oil and gas, and operates a high-voltage electricity transmission network. PAM produces petrochemicals, such as styrene, styrene-butadiene rubber and polystyrene. Pampa Energia engages in gas transportation and advisory services activities. PAM currently sports a Zacks Rank #1 and has a Value Score of B.
First American Financial presents a solid investment case, supported by its leadership in the U.S. title insurance market and strong pricing power in a concentrated industry. The company is focused on expanding its core title insurance and settlement services business while strengthening distribution relationships and broadening its international footprint. Strategic acquisitions and investments in technology, data and AI are enhancing efficiency and expanding its title plant coverage, positioning the company well for the next real estate cycle.
Consistent shareholder returns through dividends and share repurchases, supported by a high-quality investment portfolio and improving profitability, make the stock attractive for long-term investors seeking stability and income. FAF has a Value Score of A and currently flaunts a Zacks Rank #1.
RICHMOND, Va.--(BUSINESS WIRE)--Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or “Apple Hospitality”) today announced results of operations for the first quarter ended March 31, 2026.
Apple Hospitality REIT, Inc.
Selected Statistical and Financial Data
As of and For the Three Months Ended March 31
(Unaudited) (in thousands, except statistical and per share amounts)(1)
Three Months Ended
March 31,
2026
2025
% Change
Net income
$27,699
$31,221
(11.3%)
Net income per share
$0.12
$0.13
(7.7%)
Operating income
$48,013
$50,859
(5.6%)
Operating margin %
14.2%
15.5%
(130 bps)
Adjusted EBITDAre
$100,597
$98,446
2.2%
Comparable Hotels Adjusted Hotel EBITDA
$108,447
$104,680
3.6%
Comparable Hotels Adjusted Hotel EBITDA Margin %
32.2%
32.4%
(20 bps)
Modified funds from operations (MFFO)
$80,283
$78,807
1.9%
MFFO per share
$0.34
$0.33
3.0%
Average Daily Rate (ADR) (Actual)
$157.19
$156.24
0.6%
Occupancy (Actual)
72.8%
71.1%
2.4%
Revenue Per Available Room (RevPAR) (Actual)
$114.43
$111.04
3.1%
Comparable Hotels ADR
$157.35
$157.26
0.1%
Comparable Hotels Occupancy
72.8%
71.3%
2.1%
Comparable Hotels RevPAR
$114.61
$112.14
2.2%
Distributions paid (2)
$56,608
$69,615
(18.7%)
Distributions paid per share (2)
$0.24
$0.29
(17.2%)
Cash and cash equivalents
$7,837
Total debt outstanding
$1,571,763
Total debt outstanding, net of cash and cash equivalents
$1,563,926
Total debt outstanding, net of cash and cash equivalents, to total capitalization (3)
36.5%
Justin Knight, Chief Executive Officer of Apple Hospitality, commented, “We are pleased to report a stronger-than-anticipated start to 2026, with first quarter Comparable Hotels RevPAR growth of more than 2% despite a challenging comparison to the first quarter of 2025 which benefited from wildfire-related recovery business in Southern California and the presidential inauguration in Washington, D.C. The efficient operating model of our hotels, combined with our prudent management of expenses, enabled us to deliver meaningful flow-through of top-line improvements to bottom-line performance, resulting in growth across first quarter Comparable Hotels Adjusted Hotel EBITDA, Adjusted EBITDAre and Modified Funds from Operations. Preliminary reports for the month of April indicate Comparable Hotels RevPAR growth of more than 4% as compared to the same period last year, supported by continued strength in demand and the benefit of favorable year-over-year comparisons. While geopolitical and macroeconomic uncertainties warrant a measured view of the balance of the year, demand for our broadly diversified, rooms-focused hotels has proven resilient. Recent improvements in occupancy and booking trends, combined with the strength and expertise of our operating and corporate teams, reinforce our confidence that we are well positioned to capture demand across our markets.
“Disciplined capital allocation has been central to our success over decades in the lodging industry,” commented Mr. Knight. “We prudently balance near- and long-term investment decisions to capitalize on current opportunities while ensuring we are well positioned for the future. When combined with our keen focus on operating fundamentals, this approach has enabled us to deliver compelling total returns to our shareholders across economic cycles through improvements in operating performance and long-term value creation. In April of this year, we completed the sale of our Hampton Inn & Suites in Rochester, Minnesota, for approximately $9 million. We continue to identify and execute on select opportunities that strengthen our existing portfolio, optimize our capital reinvestment program and enhance our long-term positioning.”
Mr. Knight continued, “We are confident that with the experience, discipline and agility of our teams, the broad consumer appeal of our portfolio, and the strength and flexibility of our balance sheet, we are well positioned to successfully navigate changing market conditions and capitalize on emerging opportunities to deliver growth and maximize total returns for our shareholders over time.”
Hotel Portfolio Overview
As of March 31, 2026, Apple Hospitality owned 217 hotels with an aggregate of 29,583 guest rooms located in 84 markets throughout 37 states and the District of Columbia, including one hotel with 124 guest rooms classified as held for sale, which was sold in April 2026.
First Quarter 2026 Highlights
Operating performance: For the first quarter 2026, the Company achieved Comparable Hotels ADR of approximately $157, up 0.1% as compared to the first quarter 2025; Comparable Hotels Occupancy of approximately 73%, up 2.1% as compared to the first quarter 2025; and Comparable Hotels RevPAR of approximately $115, up 2.2% as compared to the first quarter 2025. The Company's Comparable Hotels Occupancy and RevPAR exceeded industry averages as reported by STR for the first quarter 2026. Preliminary results for the month of April 2026 indicate an increase in RevPAR of more than 4% as compared to April 2025. Bottom-line performance: For the first quarter 2026, the Company achieved Comparable Hotels Adjusted Hotel EBITDA of approximately $108 million, up 3.6% as compared to the first quarter 2025; Comparable Hotels Adjusted Hotel EBITDA Margin of 32.2%, down 20 bps as compared to the first quarter 2025; Adjusted EBITDAre of approximately $101 million, up 2.2% as compared to the first quarter 2025; and MFFO of approximately $80 million, up 1.9% as compared to the first quarter 2025. Transactional activity: During the first quarter 2026, the Company entered into a contract for the sale of its 124-room Hampton Inn & Suites Rochester-North, in Rochester, Minnesota, for a gross sales price of approximately $8.7 million. The Company completed the sale of the hotel in April 2026. Balance sheet: The Company has maintained the strength and flexibility of its balance sheet. At March 31, 2026, the Company’s total debt to total capitalization, net of cash and cash equivalents, was approximately 36.5%. Monthly distributions: During the three months ended March 31, 2026, the Company paid distributions totaling $0.24 per common share. Based on the Company’s common stock closing price of $13.39 on May 1, 2026, the current annualized regular monthly cash distribution of $0.96 per common share represents an annual yield of approximately 7.2%. The following table highlights the Company’s Comparable Hotels monthly performance during the first quarter 2026 as compared to the first quarter 2025 (in thousands, except statistical data):
% Change
January
February
March
January
February
March
January
February
March
2026
2026
2026
Q1 2026
2025
2025
2025
Q1 2025
2025
2025
2025
Q1 2025
ADR (Comparable Hotels)
$146.55
$158.72
$164.81
$157.35
$148.51
$159.84
$162.31
$157.26
(1.3%)
(0.7%)
1.5%
0.1%
Occupancy (Comparable Hotels)
63.7%
75.1%
79.9%
72.8%
63.9%
73.5%
76.7%
71.3%
(0.3%)
2.2%
4.2%
2.1%
RevPAR (Comparable Hotels)
$93.37
$119.22
$131.69
$114.61
$94.93
$117.51
$124.51
$112.14
(1.6%)
1.5%
5.8%
2.2%
Operating income (Actual)
$582
$16,151
$31,280
$48,013
$3,624
$16,254
$30,981
$50,859
(83.9%)
(0.6%)
1.0%
(5.6%)
Adjusted Hotel EBITDA (Actual) (1)
$20,493
$36,145
$51,841
$108,479
$23,209
$35,753
$46,303
$105,265
(11.7%)
1.1%
12.0%
3.1%
Comparable Hotels Adjusted Hotel
EBITDA (2)
$20,508
$36,134
$51,805
$108,447
$23,324
$35,458
$45,898
$104,680
(12.1%)
1.9%
12.9%
3.6%
Portfolio Activity
Contract for Potential Acquisition
As previously announced, the Company has entered into a fixed-price, forward-purchase contract for the purchase of an AC Hotel by Marriott that is under development in Anchorage, Alaska, for an anticipated total purchase price of $65.5 million with an expected 160 rooms, which the Company anticipates acquiring in the fourth quarter 2027. There are many conditions to closing on this hotel that have not yet been satisfied, and there can be no assurance that closing on this hotel will occur under the outstanding purchase contract.
Development Project
As previously announced, the Company has entered into a fixed-price, forward-purchase contract with a third-party developer to develop a dual-branded property, consisting of an AC Hotel by Marriott and a Residence Inn by Marriott in Las Vegas, Nevada, for an anticipated total purchase price of approximately $143.7 million. The hotels will be developed on the land the Company owns adjacent to its SpringHill Suites by Marriott Las Vegas Convention Center. The Company anticipates the hotels will be completed and opened for business in the second quarter 2028. Upon completion, the AC Hotel is expected to have approximately 237 guest rooms and the Residence Inn is expected to have approximately 160 guest rooms.
Dispositions
In April 2026, the Company sold the 124-room Hampton Inn & Suites Rochester-North, in Rochester, Minnesota, for a gross sales price of approximately $8.7 million.
Capital Improvements
Apple Hospitality consistently reinvests in its hotels to maintain and enhance each property’s relevance and competitive position within its respective market. During the three months ended March 31, 2026, the Company invested approximately $27.5 million in capital expenditures. The Company anticipates investing approximately $80 million to $90 million in capital improvements during 2026, which includes comprehensive renovation projects for approximately 21 hotels, however, inflationary pressures, supply chain shortages or tariffs, among other issues, may result in increased costs and delays for anticipated projects.
Balance Sheet and Liquidity
As of March 31, 2026, the Company had approximately $1.6 billion of total outstanding debt with a current combined weighted-average interest rate of approximately 4.6%, cash on hand of approximately $8 million and availability under its revolving credit facility of approximately $559 million. Excluding unamortized debt issuance costs and fair value adjustments, the Company’s total outstanding debt as of March 31, 2026, was comprised of approximately $183 million in property-level debt secured by 10 hotels and approximately $1.4 billion outstanding under its unsecured credit facilities. The number of unencumbered hotels in the Company’s portfolio as of March 31, 2026, was 207. The Company’s total debt to total capitalization, net of cash and cash equivalents at March 31, 2026, was approximately 36.5%, which provides Apple Hospitality with financial flexibility to fund capital requirements and pursue opportunities in the marketplace. As of March 31, 2026, the Company’s weighted-average debt maturities were approximately three years.
Capital Markets
Share Repurchase Program
The Company has in place a Share Repurchase Program that provides for share repurchases in open market transactions. The Company did not repurchase any common shares during the three months ended March 31, 2026. As of March 31, 2026, the Company had approximately $242.5 million remaining under its Share Repurchase Program for the repurchase of shares.
ATM Program
The Company also has in place an at-the-market offering program (the “ATM Program”). As of March 31, 2026, the Company had $500 million remaining under its ATM Program for the issuance of shares. No shares were sold under the ATM Program during the three months ended March 31, 2026.
Shareholder Distributions
During the three months ended March 31, 2026, the Company paid distributions totaling $0.24 per common share. Based on the Company’s common stock closing price of $13.39 on May 1, 2026, the current annualized regular monthly cash distribution of $0.96 per common share represents an annual yield of approximately 7.2%. While the Company currently expects monthly distributions to continue, each distribution is subject to approval by the Company’s Board of Directors. The Company’s Board of Directors, in consultation with management, will continue to monitor the Company’s distribution rate and timing relative to the performance of its hotels, capital improvement needs, varying economic cycles, acquisitions, dispositions, other cash requirements and the Company’s REIT status for federal income tax purposes, and may make adjustments as it deems appropriate.
Updated 2026 Outlook
The Company is updating its operational and financial outlook for 2026. This outlook, which is based on management’s current view of both operating and economic fundamentals of the Company's existing portfolio of hotels, does not take into account any unanticipated developments in its business or changes in its operating environment, nor does it take into account any unannounced hotel acquisitions or dispositions. The revised guidance range reflects the Company’s stronger-than-anticipated first quarter 2026 performance, while maintaining measured expectations given broader economic and geopolitical uncertainty. The Company is encouraged by the setup for the remainder of the year, given stronger-than-expected transient demand and upcoming favorable comparisons to prior periods impacted by government-related disruptions, and acknowledges guidance could ultimately prove conservative. As compared to the midpoint of previously provided 2026 guidance, the Company is increasing the midpoint of Net Income by $9 million, increasing the midpoint of Adjusted EBITDAre by $11 million, increasing the midpoint of Comparable Hotels RevPAR Change by 100 bps, and increasing the midpoint of Comparable Hotels Adjusted Hotel EBITDA Margin % by 50 bps. Comparable Hotels RevPAR Change guidance, which is the change in Comparable Hotels RevPAR in 2026 compared to 2025, and Comparable Hotels Adjusted Hotel EBITDA Margin % guidance include properties acquired, as if the hotels were owned as of January 1, 2025, and exclude dispositions since January 1, 2025. Results for periods prior to the Company’s ownership are not included in the Company’s actual Consolidated Financial Statements, are based on information from the prior owner of each hotel, and have not been audited or adjusted. For the full year 2026, the Company anticipates its 2026 results will be in the following range:
Updated 2026 Guidance (1)
Low-End
High-End
Net income
$143 Million
$169 Million
Comparable Hotels RevPAR Change
0.00%
2.00%
Comparable Hotels Adjusted Hotel EBITDA Margin %
32.9%
33.9%
Adjusted EBITDAre (2)
$436 Million
$458 Million
Capital expenditures
$80 Million
$90 Million
First Quarter 2026 Earnings Conference Call
The Company will host a quarterly conference call for investors and interested parties at 10 a.m. Eastern Time on Tuesday, May 5, 2026. The conference call will be accessible by telephone and the internet. To access the call, participants from within the U.S. should dial 877-407-9039, and participants from outside the U.S. should dial 201-689-8470. Participants may also access the call via live webcast by visiting the Investor Information section of the Company's website at ir.applehospitalityreit.com. A replay of the call will be available from approximately 2 p.m. Eastern Time on May 5, 2026, through 11:59 p.m. Eastern Time on May 19, 2026. To access the replay, the domestic dial-in number is 844-512-2921, the international dial-in number is 412-317-6671, and the passcode is 13759225. The archive of the webcast will be available on the Company's website for a limited time.
About Apple Hospitality REIT, Inc.
Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust (“REIT”) that owns one of the largest and most diverse portfolios of upscale, rooms-focused hotels in the United States. Apple Hospitality’s portfolio consists of 216 hotels with approximately 29,500 guest rooms located in 83 markets throughout 37 states and the District of Columbia. Concentrated with industry-leading brands, the Company’s hotel portfolio consists of 114 Hilton-branded hotels, 96 Marriott-branded hotels, five Hyatt-branded hotels and one independent hotel. For more information, please visit www.applehospitalityreit.com.
Apple Hospitality REIT Non-GAAP Financial Measures
The Company considers the following non-GAAP financial measures useful to investors as key supplemental measures of its operating performance: Funds from Operations (“FFO”); Modified FFO (“MFFO”); Earnings Before Interest, Income Taxes, Depreciation and Amortization (“EBITDA”); Earnings Before Interest, Income Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”); Adjusted EBITDAre; Adjusted Hotel EBITDA; Comparable Hotels Adjusted Hotel EBITDA; and Same Store Hotels Adjusted Hotel EBITDA. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income (loss), cash flow from operations or any other operating GAAP measure. FFO, MFFO, EBITDA, EBITDAre, Adjusted EBITDAre, Adjusted Hotel EBITDA, Comparable Hotels Adjusted Hotel EBITDA and Same Store Hotels Adjusted Hotel EBITDA are not necessarily indicative of funds available to fund the Company’s cash needs, including its ability to make cash distributions. Although FFO, MFFO, EBITDA, EBITDAre, Adjusted EBITDAre, Adjusted Hotel EBITDA, Comparable Hotels Adjusted Hotel EBITDA and Same Store Hotels Adjusted Hotel EBITDA, as calculated by the Company, may not be comparable to FFO, MFFO, EBITDA, EBITDAre, Adjusted EBITDAre, Adjusted Hotel EBITDA, Comparable Hotels Adjusted Hotel EBITDA and Same Store Hotels Adjusted Hotel EBITDA, as reported by other companies that do not define such terms exactly as the Company defines such terms, the Company believes these supplemental measures are useful to investors when comparing the Company’s results between periods and with other REITs. Reconciliations of these non-GAAP financial measures to net income (loss) are provided in the following pages.
Forward-Looking Statements Disclaimer
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are typically identified by use of statements that include phrases such as “may,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “target,” “goal,” “plan,” “should,” “will,” “predict,” “potential,” “outlook,” “strategy,” and similar expressions that convey the uncertainty of future events or outcomes. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.
Such factors include, but are not limited to, the ability of the Company to effectively acquire and dispose of properties and redeploy proceeds; the anticipated timing and frequency of shareholder distributions; the ability of the Company to fund capital obligations; the ability of the Company to successfully integrate pending transactions and implement its operating strategy; changes in general political, economic and competitive conditions and specific market conditions (including the potential effects of tariffs, inflation or a recessionary environment); reduced business and leisure travel due to geopolitical uncertainty, including terrorism and acts of war; travel-related health concerns, including widespread outbreaks of infectious or contagious diseases in the U.S.; inclement weather conditions, including natural disasters such as hurricanes, earthquakes and wildfires; government shutdowns, airline strikes or equipment failures, or other disruptions; adverse changes in the real estate and real estate capital markets; financing risks; changes in interest rates; litigation risks; regulatory proceedings or inquiries; and changes in laws or regulations or interpretations of current laws and regulations that impact the Company’s business, assets or classification as a REIT. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore there can be no assurance that such statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the results or conditions described in such statements or the objectives and plans of the Company will be achieved. In addition, the Company’s qualification as a REIT involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986, as amended. Readers should carefully review the risk factors described in the Company’s filings with the Securities and Exchange Commission, including, but not limited to, those discussed in the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Any forward-looking statement that the Company makes speaks only as of the date of this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements or cautionary factors, as a result of new information, future events, or otherwise, except as required by law.
For additional information or to receive press releases by email, visit www.applehospitalityreit.com.
Apple Hospitality REIT, Inc.
Consolidated Balance Sheets
(in thousands, except share data)
March 31,
December 31,
2026
2025
(unaudited)
Assets
Investment in real estate, net of accumulated depreciation and amortization of $2,012,971 and $1,972,264, respectively
$4,757,452
$4,787,864
Assets held for sale
8,346
-
Cash and cash equivalents
7,837
8,515
Restricted cash-furniture, fixtures and other escrows
12,944
30,903
Due from third-party managers, net
64,622
32,952
Other assets, net
43,024
41,944
Total Assets
$4,894,225
$4,902,178
Liabilities
Debt, net
$1,565,680
$1,538,584
Finance lease liabilities
110,944
111,094
Accounts payable and other liabilities
91,091
103,905
Total Liabilities
1,767,715
1,753,583
Shareholders' Equity
Preferred stock, authorized 30,000,000 shares; none issued and outstanding
-
-
Common stock, no par value, authorized 800,000,000 shares; issued and outstanding 236,067,554 and 235,635,813 shares, respectively
4,723,977
4,719,900
Accumulated other comprehensive income
5,082
2,251
Accumulated distributions greater than net income
(1,602,549)
(1,573,556)
Total Shareholders' Equity
3,126,510
3,148,595
Total Liabilities and Shareholders' Equity
$4,894,225
$4,902,178
_____________________ Note: The Consolidated Balance Sheets and corresponding footnotes can be found in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.
Apple Hospitality REIT, Inc.
Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
(in thousands, except per share data)
Three Months Ended
March 31,
2026
2025
Revenues:
Room
$
304,657
$
296,864
Food and beverage
16,300
15,511
Other
16,784
15,327
Total revenue
337,741
327,702
Expenses:
Hotel operating expense:
Operating
88,665
84,510
Hotel administrative
30,970
29,673
Sales and marketing
29,823
30,286
Utilities
13,232
12,479
Repair and maintenance
17,840
17,142
Franchise fees
16,039
14,553
Management fees
10,368
11,227
Total hotel operating expense
206,937
199,870
Property taxes, insurance and other
22,458
23,361
General and administrative
10,796
9,228
Depreciation and amortization
49,537
47,941
Total expense
289,728
280,400
Gain on sale of real estate
-
3,557
Operating income
48,013
50,859
Interest and other expense, net
(20,072
)
(19,397
)
Income before income taxes
27,941
31,462
Income tax expense
(242
)
(241
)
Net income
$
27,699
$
31,221
Other comprehensive income (loss):
Interest rate derivatives
2,831
(7,034
)
Comprehensive income
$
30,530
$
24,187
Basic and diluted net income per common share
$
0.12
$
0.13
Weighted average common shares outstanding - basic and diluted
236,112
240,067
_____________________ Note: The Consolidated Statements of Operations and Comprehensive Income and corresponding footnotes can be found in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.
Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics and Statistical Data
(Unaudited)
(in thousands, except statistical data)
Three Months Ended
March 31,
% Change
2026
2025
2025
Operating income (Actual)
$48,013
$50,859
(5.6%)
Operating margin % (Actual)
14.2%
15.5%
(130 bps)
Comparable Hotels Total Revenue
$336,943
$322,976
4.3%
Comparable Hotels Total Operating Expenses
228,496
218,296
4.7%
Comparable Hotels Adjusted Hotel EBITDA
$108,447
$104,680
3.6%
Comparable Hotels Adjusted Hotel EBITDA Margin %
32.2%
32.4%
(20 bps)
ADR (Comparable Hotels)
$157.35
$157.26
0.1%
Occupancy (Comparable Hotels)
72.8%
71.3%
2.1%
RevPAR (Comparable Hotels)
$114.61
$112.14
2.2%
ADR (Actual)
$157.19
$156.24
0.6%
Occupancy (Actual)
72.8%
71.1%
2.4%
RevPAR (Actual)
$114.43
$111.04
3.1%
Reconciliation to Actual Results
Total Revenue (Actual)
$337,741
$327,702
Revenue from acquisitions prior to ownership
-
1,887
Revenue from dispositions/assets held for sale
(798)
(6,613)
Comparable Hotels Total Revenue
$336,943
$322,976
Adjusted Hotel EBITDA (AHEBITDA) (Actual) (1)
$108,479
$105,265
AHEBITDA from acquisitions prior to ownership
-
897
AHEBITDA from dispositions/assets held for sale
(32)
(823)
AHEBITDA from New York Property (2)
-
(659)
Comparable Hotels AHEBITDA
$108,447
$104,680
Apple Hospitality REIT, Inc.
Comparable Hotels Quarterly Operating Metrics and Statistical Data
(Unaudited)
(in thousands, except statistical data)
2025
2026
Q1
Q2
Q3
Q4
Q1
Operating income (Actual)
$50,859
$84,851
$72,497
$49,597
$48,013
Operating margin % (Actual)
15.5%
22.1%
19.4%
15.2%
14.2%
Comparable Hotels Total Revenue
$322,976
$378,890
$368,192
$323,698
$336,943
Comparable Hotels Total Operating Expenses
218,296
239,106
239,732
223,401
228,496
Comparable Hotels Adjusted Hotel EBITDA
$104,680
$139,784
$128,460
$100,297
$108,447
Comparable Hotels Adjusted Hotel EBITDA Margin %
32.4%
36.9%
34.9%
31.0%
32.2%
ADR (Comparable Hotels)
$157.26
$164.19
$163.27
$153.14
$157.35
Occupancy (Comparable Hotels)
71.3%
78.8%
76.3%
70.5%
72.8%
RevPAR (Comparable Hotels)
$112.14
$129.30
$124.52
$107.94
$114.61
ADR (Actual)
$156.24
$163.56
$162.70
$152.86
$157.19
Occupancy (Actual)
71.1%
78.6%
76.2%
70.5%
72.8%
RevPAR (Actual)
$111.04
$128.59
$124.03
$107.81
$114.43
Reconciliation to Actual Results
Total Revenue (Actual)
$327,702
$384,370
$373,878
$326,436
$337,741
Revenue from acquisitions prior to ownership
1,887
1,065
-
-
-
Revenue from dispositions/assets held for sale
(6,613)
(6,545)
(5,686)
(2,738)
(798)
Comparable Hotels Total Revenue
$322,976
$378,890
$368,192
$323,698
$336,943
Adjusted Hotel EBITDA (AHEBITDA) (Actual) (1)
$105,265
$141,070
$129,602
$100,588
$108,479
AHEBITDA from acquisitions prior to ownership
897
246
-
-
-
AHEBITDA from dispositions/assets held for sale
(823)
(1,532)
(1,142)
(291)
(32)
AHEBITDA from New York Property (2)
(659)
-
-
-
-
Comparable Hotels AHEBITDA
$104,680
$139,784
$128,460
$100,297
$108,447
Apple Hospitality REIT, Inc.
Same Store Hotels Operating Metrics and Statistical Data
(Unaudited)
(in thousands, except statistical data)
Three Months Ended
March 31,
% Change
2026
2025
2025
Operating income (Actual)
$48,013
$50,859
(5.6%)
Operating margin % (Actual)
14.2%
15.5%
(130 bps)
Same Store Hotels Total Revenue
$330,739
$320,703
3.1%
Same Store Hotels Total Operating Expenses
221,934
216,261
2.6%
Same Store Hotels Adjusted Hotel EBITDA
$108,805
$104,442
4.2%
Same Store Hotels Adjusted Hotel EBITDA Margin %
32.9%
32.6%
30 bps
ADR (Same Store Hotels)
$157.24
$157.06
0.1%
Occupancy (Same Store Hotels)
73.2%
71.3%
2.7%
RevPAR (Same Store Hotels)
$115.04
$111.91
2.8%
ADR (Actual)
$157.19
$156.24
0.6%
Occupancy (Actual)
72.8%
71.1%
2.4%
RevPAR (Actual)
$114.43
$111.04
3.1%
Reconciliation to Actual Results
Total Revenue (Actual)
$337,741
$327,702
Revenue from acquisitions
(3,572)
-
Revenue from dispositions/assets held for sale
(798)
(6,613)
Revenue from non-hotel property and New York Property (1)
(2,632)
(386)
Same Store Hotels Total Revenue
$330,739
$320,703
Adjusted Hotel EBITDA (AHEBITDA) (Actual) (2)
$108,479
$105,265
AHEBITDA from acquisitions
(729)
-
AHEBITDA from dispositions/assets held for sale
(32)
(823)
AHEBITDA from New York Property (3)
1,087
-
Same Store Hotels AHEBITDA
$108,805
$104,442
_____________________ (1)
Represents revenue from the New York Property, which from the second half of 2023 through the first quarter of 2025 was considered lease revenue from a lease to a third-party hotel operator of the property, during which time the property was referred to as the "non-hotel property." Since the second quarter of 2025, this represents revenue consistent with hotel operations from the New York Property.
(2)
Represents the Company's actual Adjusted Hotel EBITDA, which excludes Adjusted EBITDAre from the New York Property from the second half of 2023 through the first quarter of 2025, due to leasing the property to a third-party hotel operator for all hotel operations. Beginning in the second quarter of 2025, Adjusted Hotel EBITDA includes hotel operations from the New York Property.
(3)
Represents Adjusted Hotel EBITDA from the New York Property since the second quarter of 2025, subsequent to the Company regaining possession of the hotel from a third-party hotel operator.
Note: Same Store Hotels is defined as the 213 hotels owned and held for use by the Company as of January 1, 2025, and during the entirety of the periods being compared, and excludes the New York Property recovered during the second quarter 2025 from a third-party hotel operator. This information has not been audited.
Reconciliation of net income to non-GAAP financial measures is included in the following pages.
Apple Hospitality REIT, Inc.
Same Store Hotels Quarterly Operating Metrics and Statistical Data
(Unaudited)
(in thousands, except statistical data)
2025
2026
Q1
Q2
Q3
Q4
Q1
Operating income (Actual)
$50,859
$84,851
$72,497
$49,597
$48,013
Operating margin % (Actual)
15.5%
22.1%
19.4%
15.2%
14.2%
Same Store Hotels Total Revenue
$320,703
$374,099
$362,817
$317,067
$330,739
Same Store Hotels Total Operating Expenses
216,261
233,542
234,658
218,076
221,934
Same Store Hotels Adjusted Hotel EBITDA
$104,442
$140,557
$128,159
$98,991
$108,805
Same Store Hotels Adjusted Hotel EBITDA Margin %
32.6%
37.6%
35.3%
31.2%
32.9%
ADR (Same Store Hotels)
$157.06
$164.09
$163.03
$152.10
$157.24
Occupancy (Same Store Hotels)
71.3%
78.7%
76.2%
70.5%
73.2%
RevPAR (Same Store Hotels)
$111.91
$129.19
$124.26
$107.18
$115.04
ADR (Actual)
$156.24
$163.56
$162.70
$152.86
$157.19
Occupancy (Actual)
71.1%
78.6%
76.2%
70.5%
72.8%
RevPAR (Actual)
$111.04
$128.59
$124.03
$107.81
$114.43
Reconciliation to Actual Results
Total Revenue (Actual)
$327,702
$384,370
$373,878
$326,436
$337,741
Revenue from acquisitions
-
(236)
(1,201)
(1,211)
(3,572)
Revenue from dispositions/assets held for sale
(6,613)
(6,545)
(5,686)
(2,738)
(798)
Revenue from non-hotel property and New York Property (1)
(386)
(3,490)
(4,174)
(5,420)
(2,632)
Same Store Hotels Total Revenue
$320,703
$374,099
$362,817
$317,067
$330,739
Adjusted Hotel EBITDA (AHEBITDA) (Actual) (2)
$105,265
$141,070
$129,602
$100,588
$108,479
AHEBITDA from acquisitions
-
(97)
(202)
(43)
(729)
AHEBITDA from dispositions/assets held for sale
(823)
(1,532)
(1,142)
(291)
(32)
AHEBITDA from New York Property (3)
-
1,116
(99)
(1,263)
1,087
Same Store Hotels AHEBITDA
$104,442
$140,557
$128,159
$98,991
$108,805
_____________________ (1)
Represents revenue from the New York Property, which from the second half of 2023 through the first quarter of 2025 was considered lease revenue from a lease to a third-party hotel operator of the property, during which time the property was referred to as the “non-hotel property.” Since the second quarter of 2025, this represents revenue consistent with hotel operations from the New York Property.
(2)
Represents the Company's actual Adjusted Hotel EBITDA, which excludes Adjusted EBITDAre from the New York Property from the second half of 2023 through the first quarter of 2025, due to leasing the property to a third-party hotel operator for all hotel operations. Beginning in the second quarter of 2025, Adjusted Hotel EBITDA includes hotel operations from the New York Property.
(3)
Represents Adjusted Hotel EBITDA from the New York Property since the second quarter of 2025, subsequent to the Company regaining possession of the hotel from a third-party hotel operator.
Note: Same Store Hotels is defined as the 213 hotels owned and held for use by the Company as of January 1, 2025, and during the entirety of the periods being compared, and excludes the New York Property recovered during the second quarter 2025 from a third-party hotel operator. This information has not been audited.
Reconciliation of net income to non-GAAP financial measures is included in the following pages.
Apple Hospitality REIT, Inc.
Reconciliation of Net Income to EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted Hotel EBITDA
(Unaudited) (in thousands)
EBITDA is a commonly used measure of performance in many industries and is defined as net income (loss) excluding interest, income taxes, depreciation and amortization. The Company believes EBITDA is useful to investors because it helps the Company and its investors evaluate the ongoing operating performance of the Company by removing the impact of its capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization). In addition, certain covenants included in the agreements governing the Company’s indebtedness use EBITDA, as defined in the specific credit agreement, as a measure of financial compliance.
In addition to EBITDA, the Company also calculates and presents EBITDAre in accordance with standards established by the National Association of Real Estate Investment Trusts (“Nareit”), which defines EBITDAre as EBITDA, excluding gains and losses from the sale of certain real estate assets (including gains and losses from change in control), plus real estate related impairments, and adjustments to reflect the entity’s share of EBITDAre of unconsolidated affiliates. The Company presents EBITDAre because it believes that it provides further useful information to investors in comparing its operating performance between periods and between REITs that report EBITDAre using the Nareit definition.
The Company also considers the exclusion of non-cash straight-line operating ground lease expense and share-based compensation expense from EBITDAre useful, as these expenses do not reflect the underlying performance of the related hotels (Adjusted EBITDAre).
The Company further excludes corporate expense, defined as actual corporate-level general and administrative expense, excluding share-based compensation expense, for the Company as well as Adjusted EBITDAre from the non-hotel property (the New York Property) from Adjusted EBITDAre (Adjusted Hotel EBITDA) to isolate property-level operational performance over which the Company’s hotel operators have direct control. The Company believes Adjusted Hotel EBITDA provides useful supplemental information to investors regarding operating performance and it is used by management to measure the performance of the Company’s hotels and effectiveness of the operators of the hotels. In addition, Adjusted EBITDAre and Adjusted Hotel EBITDA are both components of key compensation measures of operational performance within the Company's 2026 incentive plan.
The following table reconciles the Company’s GAAP net income to EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted Hotel EBITDA on a quarterly basis for 2025 and 2026:
2025
2026
Q1
Q2
Q3
Q4
Q1
Net income
$31,221
$63,648
$50,880
$29,615
$27,699
Depreciation and amortization
47,941
48,022
48,100
48,564
49,537
Amortization of favorable and unfavorable operating leases, net
Apple Hospitality REIT, Inc.
Reconciliation of Net Income to FFO and MFFO
(Unaudited)
(in thousands)
The Company calculates and presents FFO in accordance with standards established by Nareit, which defines FFO as net income (loss) (computed in accordance with GAAP), excluding gains and losses from the sale of certain real estate assets (including gains and losses from change in control), extraordinary items as defined by GAAP, and the cumulative effect of changes in accounting principles, plus real estate related depreciation, amortization and impairments, and adjustments for unconsolidated affiliates. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most real estate industry investors consider FFO to be helpful in evaluating a real estate company’s operations. The Company further believes that by excluding the effects of these items, FFO is useful to investors in comparing its operating performance between periods and between REITs that report FFO using the Nareit definition. FFO as presented by the Company is applicable only to its common shareholders, but does not represent an amount that accrues directly to common shareholders.
The Company calculates MFFO by further adjusting FFO for the exclusion of amortization of finance ground lease assets, amortization of favorable and unfavorable operating leases, net, non-cash straight-line operating ground lease expense, and share-based compensation expense, as these expenses do not reflect the underlying performance of the related hotels. The Company presents MFFO when evaluating its performance because it believes that it provides further useful supplemental information to investors regarding its ongoing operating performance. In addition, MFFO is a component of a key compensation measure of operational performance within the Company's 2026 incentive plan.
The following table reconciles the Company’s GAAP net income to FFO and MFFO for the three months ended March 31, 2026 and 2025:
Three Months Ended
March 31,
2026
2025
Net income
$27,699
$31,221
Depreciation of real estate owned
48,778
47,181
Gain on sale of real estate
-
(3,557)
Funds from operations
76,477
74,845
Amortization of finance ground lease assets
759
759
Amortization of favorable and unfavorable operating leases, net
Apple Hospitality REIT, Inc.
2026 Guidance Reconciliation of Net Income to EBITDA, EBITDAre, Adjusted EBITDAre, Adjusted Hotel EBITDA and Comparable Hotels Adjusted Hotel EBITDA
(Unaudited) (in thousands)
The guidance of net income, EBITDA, EBITDAre, Adjusted EBITDAre, Adjusted Hotel EBITDA and Comparable Hotels Adjusted Hotel EBITDA (and all other guidance given) are forward-looking statements and are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause actual results and performance to differ materially from those expressed or implied by these forecasts. Although the Company believes the expectations reflected in the forecasts are based upon reasonable assumptions, there can be no assurance that the expectations will be achieved or that the results will not be materially different. Risks that may affect these assumptions and forecasts include, but are not limited to, the following: changes in political, economic, competitive and specific market conditions; the amount and timing of announced or future acquisitions and dispositions of hotel properties; the level of capital expenditures may change significantly, which will directly affect the level of depreciation expense, interest expense and net income; the amount and timing of debt repayments may change significantly based on market conditions, which will directly affect the level of interest expense and net income; the amount and timing of transactions involving the Company's common stock may change based on market conditions; and other risks and uncertainties associated with the Company's business described herein and in filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2025.
The following table reconciles the Company’s GAAP net income guidance to EBITDA, EBITDAre, Adjusted EBITDAre, Adjusted Hotel EBITDA and Comparable Hotels Adjusted Hotel EBITDA guidance for the year ending December 31, 2026:
Year Ending December 31, 2026
Low-End
High-End
Net income
$142,520
$169,420
Depreciation and amortization
196,000
193,000
Amortization of favorable and unfavorable leases, net
For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Apple Hospitality REIT (APLE - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Finance sector should help us answer this question.
Apple Hospitality REIT is one of 833 companies in the Finance group. The Finance group currently sits at #4 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Apple Hospitality REIT is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for APLE's full-year earnings has moved 4.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, APLE has moved about 16.4% on a year-to-date basis. Meanwhile, the Finance sector has returned an average of -0.4% on a year-to-date basis. This means that Apple Hospitality REIT is outperforming the sector as a whole this year.
Another stock in the Finance sector, ASX Limited - Unsponsored ADR (ASXFY - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 21.6%.
Over the past three months, ASX Limited - Unsponsored ADR's consensus EPS estimate for the current year has increased 30.3%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Apple Hospitality REIT belongs to the REIT and Equity Trust - Other industry, which includes 90 individual stocks and currently sits at #80 in the Zacks Industry Rank. This group has gained an average of 11.3% so far this year, so APLE is performing better in this area.
On the other hand, ASX Limited - Unsponsored ADR belongs to the Securities and Exchanges industry. This 8-stock industry is currently ranked #64. The industry has moved -8.3% year to date.
Going forward, investors interested in Finance stocks should continue to pay close attention to Apple Hospitality REIT and ASX Limited - Unsponsored ADR as they could maintain their solid performance.
RICHMOND, Va.--(BUSINESS WIRE)--Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or “Apple Hospitality”) today announced that its Board of Directors declared a regular monthly cash distribution of $0.08 per common share. The distribution is payable on June 15, 2026, to shareholders of record as of May 29, 2026.
Based on the Company’s common stock closing price of $14.09 on May 18, 2026, the annualized distribution of $0.96 per common share represents an annual yield of approximately 6.8%.
About Apple Hospitality REIT, Inc.
Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust (“REIT”) that owns one of the largest and most diverse portfolios of upscale, rooms-focused hotels in the United States. Apple Hospitality’s portfolio consists of 216 hotels with approximately 29,500 guest rooms located in 83 markets throughout 37 states and the District of Columbia. Concentrated with industry-leading brands, the Company’s hotel portfolio consists of 114 Hilton-branded hotels, 96 Marriott-branded hotels, five Hyatt-branded hotels and one independent hotel. For more information, please visit www.applehospitalityreit.com.
Forward-Looking Statements Disclaimer
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are typically identified by use of statements that include phrases such as “may,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “target,” “goal,” “plan,” “should,” “will,” “predict,” “potential,” “outlook,” “strategy,” and similar expressions that convey the uncertainty of future events or outcomes. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.
Such factors include, but are not limited to, the ability of the Company to effectively acquire and dispose of properties and redeploy proceeds; the anticipated timing and frequency of shareholder distributions; the ability of the Company to fund capital obligations; the ability of the Company to successfully integrate pending transactions and implement its operating strategy; changes in general political, economic and competitive conditions and specific market conditions (including the potential effects of tariffs, inflation or a recessionary environment); reduced business and leisure travel due to geopolitical uncertainty, including terrorism and acts of war; travel-related health concerns, including widespread outbreaks of infectious or contagious diseases in the U.S.; inclement weather conditions, including natural disasters such as hurricanes, earthquakes and wildfires; government shutdowns, airline strikes or equipment failures or other disruptions; adverse changes in the real estate and real estate capital markets; financing risks; changes in interest rates; litigation risks; regulatory proceedings or inquiries; and changes in laws or regulations or interpretations of current laws and regulations that impact the Company’s business, assets or classification as a REIT. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore there can be no assurance that such statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the results or conditions described in such statements or the objectives and plans of the Company will be achieved. In addition, the Company’s qualification as a REIT involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986, as amended. Readers should carefully review the risk factors described in the Company’s filings with the Securities and Exchange Commission, including, but not limited to, those discussed in the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Any forward-looking statement that the Company makes speaks only as of the date of this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements or cautionary factors, as a result of new information, future events, or otherwise, except as required by law.
For additional information or to receive press releases by email, visit www.applehospitalityreit.com.
Key Takeaways Low price-to-sales ratios can spotlight value when earnings are weak, since revenues are harder to manipulate.A low P/S is more compelling alongside lower debt and steady cash flow, which can support stability.Screening also favors cheaper P/E and P/B versus industry medians to avoid "value traps" on one metric. Investing in stocks based on valuation metrics is a proven strategy for identifying opportunities with strong upside potential. While the price-to-earnings (P/E) ratio is a popular tool for gauging value, it has its limitations, especially when evaluating companies that are unprofitable or still in their early growth phases.
In such cases, the price-to-sales (P/S) ratio becomes particularly valuable. By comparing a company’s market capitalization to its revenues, the P/S ratio offers a clearer picture of value when earnings are minimal or volatile.
If you are looking for growth at a discount, low P/S stocks can offer compelling opportunities. These stocks often trade below their intrinsic value, making them attractive to investors seeking upside potential without paying a premium. While the P/S ratio alone does not guarantee success, when combined with strong fundamentals and positive business momentum, it can signal a stock poised for a breakout.
Shoe Carnival (SCVL - Free Report) , Nu Skin Enterprises, Inc. (NUS - Free Report) , Apple Hospitality REIT, Inc. (APLE - Free Report) , ConocoPhillips (COP - Free Report) and First American Financial Corporation (FAF - Free Report) are some companies with low price-to-sales ratios and the potential to offer higher returns.
What Is the Price-to-Sales Ratio?While a loss-making company with a negative price-to-earnings ratio falls out of investor favor, its price-to-sales can indicate the hidden strength of the business. This underrated ratio is also used to identify a recovery situation or ensure a company's growth is not overvalued.
A stock’s price-to-sales ratio reflects how much investors pay for each dollar of revenue generated by a company.
If the price-to-sales ratio is 1, investors are paying $1 for every $1 of revenues generated by the company. A stock with a price-to-sales ratio below 1 is a good bargain, as investors need to pay less than a dollar for a dollar’s worth.
Thus, a stock with a lower price-to-sales ratio is a more suitable investment than a stock with a high price-to-sales ratio.
The price-to-sales ratio is often preferred over price-to-earnings, as companies can manipulate their earnings using various accounting measures. However, sales are harder to manipulate and are relatively reliable.
However, one should keep in mind that a company with high debt and a low price-to-sales ratio is not an ideal choice. The high debt level will have to be paid off at some point, leading to further share issuance, a rise in market cap and a higher price-to-sales ratio.
In any case, the price-to-sales ratio used in isolation cannot do the trick. One should analyze other ratios like Price/Earnings, Price/Book and Debt/Equity before arriving at any investment decision.
Screening ParametersPrice-to-Sales less than the Median Price-to-Sales for its Industry: The lower the price-to-sales ratio, the better.
Price-to-Earnings using F(1) estimate less than the Median Price-to-Earnings for its Industry: The lower, the better.
Price-to-Book (Common Equity) less than the Median Price-to-Book for its Industry: This is another parameter to ensure the value feature of a stock.
Debt-to-Equity (Most Recent) less than the Median Debt-to-Equity for its Industry: A company with less debt should have a stable price-to-sales ratio.
Current Price greater than or equal to $5: The stocks must be trading at a minimum of $5 or higher.
Zacks Rank less than or equal to #2 (Buy): Zacks Rank #1 (Strong Buy) or #2 stocks are known to outperform, irrespective of the market environment.
Value Score less than or equal to B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank 1 or 2, offer the best opportunities in the value investing space.
Here are five of the 24 stocks that qualified the screening:
Shoe Carnival operates as a family footwear retailer in the United States, offering dress, casual, athletic and seasonal footwear for men, women and children. The company is undergoing a disciplined transformation to strengthen fundamentals and long-term profitability. Its “rebanner” strategy is shifting the mix toward the higher-end Shoe Station banner, attracting more affluent consumers and premium brands, while reducing the reliance on value-focused shoppers.
With margin discipline, a debt-free balance sheet and strong cash flow, Shoe Carnival is investing in growth and store conversions. As Shoe Station expands, SCVL is evolving into a more resilient, diversified and profitable footwear retailer. SCVL currently has a Zacks Rank #2 and a Value Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
Provo, Utah-based Nu Skin develops and distributes a wide range of premium cosmetics, beauty, personal care and wellness products. Nu Skin’s fundamentals remain under pressure, with softer revenues, customer activity and salesforce productivity. However, the business retains healthy margins, positive adjusted earnings and disciplined capital allocation.
Management is focused on improving execution through Prysm iO, wellness subscriptions and emerging market expansion. The investment case depends on stabilization in core selling metrics and successful conversion of innovation into sustainable growth. NUS has a Value Score of A and a Zacks Rank of 2 at present.
Apple Hospitality is a publicly traded real estate investment trust that owns the largest and most diverse portfolio of upscale, room-focused hotels in the United States. The company offers a fundamentally sound lodging REIT story built on portfolio quality, brand alignment and disciplined execution. It owns a geographically diversified collection of room-focused hotels affiliated with leading brands, giving it broad exposure to leisure, corporate and group demand.
Management has demonstrated prudent capital allocation through selective acquisitions, timely dispositions and consistent reinvestment to keep properties competitive. A flexible balance sheet and ample liquidity provide resilience across cycles. While recent demand softness weighed on its performance, leisure trends remain supportive and operational agility positions the portfolio to benefit as business travel normalizes, supporting long-term cash flow stability and shareholder returns. APLE has a Value Score of B and a Zacks Rank of 2 at present.
Houston, TX-based ConocoPhillips is primarily involved in the exploration and production of oil and natural gas. The company is well-positioned for long-term growth, bolstered by its strong presence in key U.S. shale plays, such as Eagle Ford, Permian Basin and Bakken. The company's focus on premium drilling locations, combined with its low-cost production and high-quality reserves, supports steady production growth. Additionally, the company is expanding its global footprint in the LNG market, particularly in Alaska, Qatar and the United States, to meet the growing demand for cleaner energy.
ConocoPhillips is committed to sustainability, prioritizing LNG and low-carbon technologies to align with global decarbonization trends. The company’s disciplined approach to cost management and operational efficiency ensures resilience and free cash flow, reinforcing its ability to navigate market uncertainties and drive long-term value. COP currently has a Zacks Rank #2 and a Value Score of B.
First American Financial presents a solid investment case, supported by its leadership in the U.S. title insurance market and strong pricing power in a concentrated industry. The company is focused on expanding its core title insurance and settlement services business, while strengthening distribution relationships and broadening its international footprint. Strategic acquisitions and investments in technology, data and AI are enhancing efficiency and expanding its title plant coverage, positioning the company well for the next real estate cycle.
Consistent shareholder returns through dividends and share repurchases, supported by a high-quality investment portfolio and improving profitability, make the stock attractive for long-term investors seeking stability and income. FAF has a Value Score of A and currently flaunts a Zacks Rank #1.
Apple Hospitality REIT remains a buy, supported by robust Q1 results, raised guidance, and a sustainable 6.6% dividend yield. APLE's updated guidance projects RevPAR growth of 0–2% and Adjusted EBITDAre of $436–$458 million, with continued disciplined capital allocation. Macro risks—geopolitical tensions, inflation, and delayed Fed cuts—could pressure APLE's valuation and consumer demand in the near term.
Current market conditions feel especially unstable due to 'priced to perfection' valuations amid macroeconomic uncertainties. Equities and bond spreads are at all-time highs, raising sustainability concerns for risk-taking in this environment. I prioritize stock picking, focusing on assets perceived as high risk where actual risks are misunderstood or high quality is overlooked.
Investors interested in Finance stocks should always be looking to find the best-performing companies in the group. Has Apple Hospitality REIT (APLE - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Finance sector should help us answer this question.
Apple Hospitality REIT is a member of our Finance group, which includes 832 different companies and currently sits at #6 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Apple Hospitality REIT is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for APLE's full-year earnings has moved 4.7% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, APLE has returned 23.6% so far this year. At the same time, Finance stocks have gained an average of 0.4%. As we can see, Apple Hospitality REIT is performing better than its sector in the calendar year.
One other Finance stock that has outperformed the sector so far this year is Gold.com (GOLD - Free Report) . The stock is up 16.2% year-to-date.
Over the past three months, Gold.com's consensus EPS estimate for the current year has increased 22.4%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Apple Hospitality REIT belongs to the REIT and Equity Trust - Other industry, a group that includes 90 individual stocks and currently sits at #93 in the Zacks Industry Rank. On average, stocks in this group have gained 9% this year, meaning that APLE is performing better in terms of year-to-date returns.
On the other hand, Gold.com belongs to the Financial - Miscellaneous Services industry. This 107-stock industry is currently ranked #108. The industry has moved -6.2% year to date.
Investors with an interest in Finance stocks should continue to track Apple Hospitality REIT and Gold.com. These stocks will be looking to continue their solid performance.
RICHMOND, Va.--(BUSINESS WIRE)--Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or “Apple Hospitality”) today announced that it plans to report second quarter 2026 financial results after the market closes on Wednesday, August 5, 2026, and host a conference call for investors and interested parties at 11:00 a.m. Eastern Time on Thursday, August 6, 2026, to discuss the results.
The conference call will be accessible by telephone and the internet. To access the call, participants from within the U.S. should dial 877-407-9039, and participants from outside the U.S. should dial 201-689-8470. Participants may also access the call via live webcast by visiting the Investor Information section of the Company's website at ir.applehospitalityreit.com.
A replay of the call will be available from approximately 3:00 p.m. Eastern Time on August 6, 2026, through 11:59 p.m. Eastern Time on August 20, 2026. To access the replay, the domestic dial-in number is 844-512-2921, the international dial-in number is 412-317-6671, and the passcode is 13760939. In addition, an archive of the webcast will be available on the Company's website for a limited time.
About Apple Hospitality REIT, Inc.
Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust (“REIT”) that owns one of the largest and most diverse portfolios of upscale, rooms-focused hotels in the United States. Apple Hospitality’s portfolio consists of 216 hotels with approximately 29,500 guest rooms located in 83 markets throughout 37 states and the District of Columbia. Concentrated with industry-leading brands, the Company’s hotel portfolio consists of 114 Hilton-branded hotels, 96 Marriott-branded hotels, five Hyatt-branded hotels and one independent hotel. For more information, please visit www.applehospitalityreit.com.
For additional information or to receive press releases by email, visit www.applehospitalityreit.com.
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Apple Hospitality REIT (APLE - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Apple Hospitality REIT currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if APLE is a promising momentum pick, let's examine some Momentum Style elements to see if this hotel-owning real estate investment trust holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For APLE, shares are up 6.47% over the past week while the Zacks REIT and Equity Trust - Other industry is up 0.21% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 13.05% compares favorably with the industry's 0.13% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Shares of Apple Hospitality REIT have increased 32.34% over the past quarter, and have gained 32.91% in the last year. On the other hand, the S&P 500 has only moved 10.22% and 24.7%, respectively.
Investors should also pay attention to APLE's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. APLE is currently averaging 2,631,240 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with APLE.
Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year. This revision helped boost APLE's consensus estimate, increasing from $1.49 to $1.58 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that APLE is a #2 (Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Apple Hospitality REIT on your short list.
BROOMFIELD, Colo., June 8, 2026 /PRNewswire/ -- Vail Resorts, Inc. (NYSE: MTN) today reported results for the third quarter of fiscal 2026 ended April 30, 2026, updated fiscal 2026 guidance and provided early season pass sales results.
The ski-resort operator said weather conditions remained extremely unfavorable during the recent quarter, weighing on visits and revenue, particularly at Vail's resorts in the Rockies.
MTN stock is moving. Watch the price action here. Vail Resorts Q3 Details Vail Resorts reported quarterly earnings of $8.81 per share, which missed the Street estimate of $9.20 by 4.24%
Quarterly sales of $1.21 billion, which missed the analyst consensus estimate of $1.22 billion and were down from $1.23 billion in the same period last year.
The company said pass product sales through May 26, 2026, for the upcoming 2026/2027 North American ski season decreased approximately 10%, days sold decreased approximately 8% and sales dollars decreased approximately 5%, as compared to the prior year period.
“Weather conditions remained extremely unfavorable in the third quarter, adding to what had already been one of the most challenging winters in history across the western U.S., driving continued pressure on visitation and revenue in the quarter, particularly at our destination resorts in the Rockies,” CEO Rob Katz said.
MTN Stock Price Activity: According to data from Benzinga Pro, Vail Resorts stock fell 4.88% to $130.51 in Monday's extended trading.
Photo: Shutterstock, according to Benzinga Pro data.
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Vail Resorts (MTN - Free Report) came out with quarterly earnings of $8.81 per share, missing the Zacks Consensus Estimate of $8.97 per share. This compares to earnings of $10.54 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -1.82%. A quarter ago, it was expected that this ski resort operator would post earnings of $6.06 per share when it actually produced earnings of $5.87, delivering a surprise of -3.14%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Vail Resorts, which belongs to the Zacks Leisure and Recreation Services industry, posted revenues of $1.21 billion for the quarter ended April 2026, missing the Zacks Consensus Estimate by 0.01%. This compares to year-ago revenues of $1.3 billion. The company has not been able to beat consensus revenue estimates over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Vail Resorts shares have added about 1.9% since the beginning of the year versus the S&P 500's gain of 7.9%.
What's Next for Vail Resorts?While Vail Resorts has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Vail Resorts was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$5.02 on $274.76 million in revenues for the coming quarter and $4.76 on $2.84 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Leisure and Recreation Services is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Carnival (CCL - Free Report) , another stock in the same industry, has yet to report results for the quarter ended May 2026.
This cruise operator is expected to post quarterly earnings of $0.34 per share in its upcoming report, which represents a year-over-year change of -2.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Carnival's revenues are expected to be $6.63 billion, up 4.7% from the year-ago quarter.
For the quarter ended April 2026, Vail Resorts (MTN - Free Report) reported revenue of $1.21 billion, down 7% over the same period last year. EPS came in at $8.81, compared to $10.54 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.21 billion, representing a surprise of -0.01%. The company delivered an EPS surprise of -1.82%, with the consensus EPS estimate being $8.97.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Vail Resorts performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Mountain - Total skier visits: 7.28 thousand compared to the 7.43 thousand average estimate based on three analysts.Lodging - Managed condominium statistics - RevPAR: $174.87 versus $208.83 estimated by three analysts on average.Lodging - Owned hotel statistics - RevPAR: $137.95 versus $168.57 estimated by three analysts on average.Mountain - ETP: $100.24 versus the three-analyst average estimate of $98.88.Net Revenue- Mountain net revenue: $1.13 billion versus $1.13 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -6.8% change.Net Revenue- Resort net revenue: $1.21 billion versus $1.22 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -7% change.Net Revenue- Lodging net revenue: $75.32 million versus $82.91 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -9.1% change.Net Revenue- Mountain net revenue- Retail/rental: $104.21 million versus the three-analyst average estimate of $100.99 million. The reported number represents a year-over-year change of -8.3%.Net Revenue- Mountain net revenue- Other: $55.29 million compared to the $53.66 million average estimate based on three analysts. The reported number represents a change of -3.7% year over year.Net Revenue- Lodging net revenue- Managed condominium rooms: $28.35 million versus $32.85 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -13.1% change.Net Revenue- Mountain net revenue- Dining: $99.14 million versus the three-analyst average estimate of $96.28 million. The reported number represents a year-over-year change of -10.7%.Net Revenue- Mountain net revenue- Ski school: $141.76 million versus $137.6 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -11.5% change.View all Key Company Metrics for Vail Resorts here>>>
Shares of Vail Resorts have returned +7.9% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.
MarketBeat Week in Review – 03/09 - 03/13Vail Resorts NYSE: MTN said historically poor weather across the Western United States continued to weigh on fiscal third-quarter results, pressuring visitation and revenue at its mountain resorts while management emphasized that its advance commitment pass model and cost controls helped cushion the impact.
On the company’s fiscal third-quarter earnings call, Chief Executive Officer Rob Katz said the season was “very challenging,” particularly at destination resorts in the Rockies, which he said experienced the “worst season on record for snowfall.” Katz said industry-wide visitation in the Rockies declined approximately 24%, compared with a prior worst decline of 8% in 2012 outside of COVID-related closures.
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Warm Winter Hit Vail’s Earnings. What Does It Mean for the Stock?“The historically adverse weather conditions we discussed last quarter continued through March and April, which drove meaningful pressure on visitation and revenue in the quarter,” Katz said.
Weather Pressures Revenue and Visitation Management said resort revenue for the quarter declined 7% from the prior year, primarily due to unfavorable weather that affected both local and destination guests, especially in the Rockies and Tahoe. Lift revenue declined 5%, despite total visitation being down 15%, as North American pass sales had increased 3% entering the season.
3 Stocks Awaiting Winter Winds of OpportunityResort EBITDA for the quarter fell 9%. Management said the decline was partly mitigated by Vail Resorts’ advance commitment model, cost discipline and geographic diversity.
The company said North American pass visitation declined 17% over the winter, while lift ticket visitation declined 10%. In the Rockies, snowfall for the winter finished 55% below the 30-year average, management said.
Despite the difficult operating environment, Katz said the company achieved record guest experience scores, including year-over-year increases at every resort in the Rockies. He also pointed to full staffing for the third consecutive season, strong seasonal employee retention, high employee engagement scores and a decline in employee injuries per labor hour.
Guidance Cut to Reflect Late-Season Weakness Vail Resorts updated its full-year outlook, saying it now expects net income attributable to the company in the range of $128 million to $162 million and Resort Reported EBITDA of $735 million to $755 million. Management said the Resort EBITDA midpoint is now at the bottom of the range provided in March, consistent with an April update.
The company said the revised forecast reflects the continuation of historically challenging conditions through March and April, which further pressured late-season visitation.
Management also lowered expected cash taxes to a range of $75 million to $85 million, citing the reduction in earnings.
Vail Resorts said it remains on track to exceed its initial two-year Resource Efficiency Transformation Plan target of $100 million, with expectations to achieve $106 million of annualized efficiencies by the end of the year. The company also said it remains on track to deliver an additional $30 million of savings in fiscal 2028.
Management said the company ended the quarter with approximately $1.1 billion in liquidity and net leverage of 3.5 times trailing 12-month EBITDA. It reaffirmed plans for approximately $215 million to $220 million in core capital spending and $234 million to $239 million in total capital investments.
The company maintained its quarterly dividend at $2.22 per share and said it has repurchased approximately $45 million of shares year-to-date.
Pass Sales Decline After Difficult Season Spring pass sales were down 10% in units and down 5% in sales dollars including tax through the May deadline. Pass days sold were down approximately 8%, reflecting a higher mix of unlimited products.
Katz said the decline was not surprising given the severity of the season and the significant pass growth Vail Resorts had achieved over the prior five years, particularly in frequency products.
Management said weakness was most pronounced in weather-impacted destination markets, including Colorado, Utah and Lake Tahoe, as well as among destination guests who typically travel to the Rockies. Those areas saw low double-digit unit declines. By contrast, pass unit declines were in the low single digits in Eastern U.S. markets and at Whistler Blackcomb.
The company said its core high-value unlimited pass products are outperforming frequency products. A new young adult product also performed ahead of other age groups, though Katz said it was “not something that is going to drive our overall results for the year” and is instead a mitigator to other declines.
Katz said third-party data suggests Vail Resorts’ spring pass performance outpaced the broader industry, which he attributed to the company’s new marketing and product strategies. He said a portion of the decline may reflect delayed purchase decisions rather than reduced intent to ski next season.
Lift Ticket Strategy Shows Early Signs of Traction Katz said the company made changes heading into the season to focus on driving lift ticket visitation. These included expanded Epic Friend Tickets, which offer a 50% discount, and Super Advanced Lift Tickets, which offer a 30% discount for purchases made a month in advance.
Visitation from benefit tickets increased 10%, despite a 10% decline in overall lift ticket visitation, Katz said. The company also saw a 65% increase in tickets sold more than 28 days in advance, with no evidence of material cannibalization of other advanced ticket products.
Katz said Vail Resorts’ U.S. lift ticket visitation declined 12%, while the rest of the industry was down approximately 20%, based on preliminary data. In the Northeast, where conditions were stronger, Vail Resorts’ lift ticket visits increased 8%, compared with an estimated 8% decline for the rest of the industry.
During the question-and-answer session, Katz said if some consumers do not buy passes and instead purchase lift tickets, the company’s overall effective ticket price would rise. However, he emphasized that Vail Resorts still wants guests in the advance commitment category.
Management Plans for Normal Conditions Next Season Asked whether the current pass sales trend changes the company’s planning for next season, Katz said it does not. He said management is planning for a normal season with normal conditions and does not intend to pull back on guest experience investments.
“Right now, there’s no change in our planning for next season,” Katz said.
Management said U.S. ski market data suggests visitation typically fully recovers after poor-condition seasons when the subsequent season has normal conditions. Katz said Vail Resorts is positioned to capture such a recovery through its pass, lift ticket and marketing strategies, though he acknowledged the season’s conditions were unprecedented.
The company also highlighted initiatives aimed at improving the guest experience, including investments in lifts, snowmaking, terrain, technology, My Epic Gear, ski school digitization and dining. Katz said fiscal 2027 will be a transition year for My Epic Gear, with a fuller experience expected in fiscal 2028.
In closing, Katz said the difficult season “sharpened our focus” on improving the end-to-end guest experience, from marketing and products to the on-mountain experience.
About Vail Resorts NYSE: MTNVail Resorts, Inc is a leading mountain resort company that owns and operates an integrated network of ski areas, hotels, restaurants and retail outlets. The company's signature Epic Pass program offers skiers and snowboarders season‐long access to its portfolio of resorts, while ancillary services such as ski and snowboard schools, equipment rental and retail drive additional revenue.
Headquartered in Broomfield, Colorado, Vail Resorts was formed in 1997, building on the legacy of Vail Associates, which opened the Vail ski area in 1962.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Vail Resorts Right Now?Before you consider Vail Resorts, you'll want to hear this.
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Shares of Vail Resorts Inc (NYSE:MTN) are plunging 3.5% to trade at $132.45 out of the gate, sinking after the company shared a fiscal third-quarter earnings miss on revenue that matched expectations. The $8.81 earnings per share and $1.21 billion in revenue were followed up with a cut to the company's full-year outlook, as the skiing destination said it suffered its worst winter in 40 years.
Ahead of today's pullback, MTN was on the up, yesterday logging a third-straight daily win. The overhead $140 level and 200-day moving average have moved in as a ceiling of resistance, however, leaving today's pullback to chip further away at the equity's already 8.7% year-over-year deficit.
Several analysts have already chimed in with price-target cuts, the lowest coming from Barclays to $119 from $138. Heading into today eight of the 12 brokerages in coverage sport a "hold" or "strong sell" recommendation, while the average 12-month price target of $151.09 comes in at a 10% premium to Monday's close.
Shorts have been retreating, with short interest down 4.5% during the most recent reporting period, This accounts for a hefty 20.9% of MTN's total available float, or nearly nine days of pent-up buying power.
Options traders have been more bearish than usual toward Vail Resorts stock recently. The equity's 50-day put/call volume ratio of 4.66 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the highest possible annual percentile.
Vail Resorts Inc. (NYSE:MTN) on Monday posted worse-than-expected third-quarter results.
Vail Resorts reported quarterly earnings of $8.81 per share, which missed the Street estimate of $9.20 by 4.24%. Quarterly sales of $1.21 billion, which missed the analyst consensus estimate of $1.22 billion and were down from $1.23 billion in the same period last year.
"Weather conditions remained extremely unfavorable in the third quarter, adding to what had already been one of the most challenging winters in history across the western U.S., driving continued pressure on visitation and revenue in the quarter, particularly at our destination resorts in the Rockies," CEO Rob Katz said.
Vail Resorts shares fell 5% to $130.52 on Tuesday.
These analysts made changes to their price targets on Vail Resorts following earnings announcement.
Barclays analyst Brandt Montour maintained Vail Resorts with an Underweight rating and lowered the price target from $138 to $119. Stifel analyst Jeffrey Stantial maintained the stock with a Buy and lowered the price target from $172 to $167. Considering buying MTN stock? Here’s what analysts think:
Photo via Shutterstock
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Key Takeaways MTN posted Q3 adjusted EPS $8.81 vs. $8.97 estimate as revenues fell 7% to $1.21B.Record-low snowfall and warm temps drove 15% visitation drop, hitting Rockies/Tahoe and fixed-cost margins.MTN cut 2026 outlook; early 26/27 pass sales softened with units -10%, days -8%, dollars -5%. Vail Resorts, Inc. (MTN - Free Report) posted third-quarter fiscal 2026 results, with earnings per share (EPS) missing the Zacks Consensus Estimate and revenues meeting the same. On a year-over-year basis, both the top and bottom lines declined.
Results were shaped by record-low snowfall and historically warm temperatures across key western markets, which led to earlier resort closures and softer demand, particularly in the Rockies and Tahoe regions. Profitability also moved lower on a segment basis as weather-related headwinds outweighed the benefits of cost discipline and ongoing efficiency initiatives.
MTN’s advanced commitment model helped provide stability in a volatile season, as pre-sold products supported performance even as on-mountain volume weakened. Management also highlighted continued progress on guest experience initiatives, alongside cost actions that helped limit the downside from the demand shock.
Following the announcement, shares of MTN declined 4.5% during the after-hours trading session yesterday.
MTN’s Q3 Earnings & RevenuesIn the quarter under review, the company reported adjusted earnings of $8.81 per share, missing the Zacks Consensus Estimate of $8.97 by 1.8%. In the year-ago quarter, it had reported an EPS of $10.46.
Quarterly revenues were $1.21 billion, in line with the consensus estimate and down 7% year over year. Unfavorable conditions weighed on demand, with total visitation down 15% in the quarter, pressuring both destination and local performance.
Vail Resorts reports through two segments, Mountain and Lodging.
Vail Resorts’ Mountain Trends Showed Broad-Based SoftnessThe Mountain segment posted net revenues of $1.13 billion, down 6.8% year over year. The figure came in line with our model’s projection of $1.13 billion. Lift revenues declined 5.3% to $729.4 million, while ski school, dining and retail/rental revenues decreased 11.5%, 10.7% and 8.3%, respectively.
Profitability moved lower as the fixed-cost nature of mountain operations met reduced demand. Mountain's reported EBITDA fell 8.8% to $579.6 million. Notably, effective ticket price rose 12% to $100.24 even as total skier visits dropped to 7.276 million, reflecting a mix and pricing dynamic that partially offset volume pressure.
MTN’s Lodging Business Saw ADR and RevPAR DeclinesLodging net revenues were $75.3 million, down 9.1% year over year, with declines across owned hotel rooms, managed condominium rooms, dining and transportation. The figure missed our projection of $84.6 million. The pullback was consistent with weaker destination demand and the impact of reduced skier visitation during the quarter.
Lodging profitability was also pressured. Lodging Reported EBITDA fell 44.6% to $6.8 million, as pricing weakened and ancillary revenues softened. Owned hotel ADR declined 9.9% to $312.5 and RevPAR fell 16.7% to $137.9, while managed condominium RevPAR decreased 15.4% to $174.9.
MTN's Results Fell as Rockies Conditions WeighedThe quarter was defined by weather-related disruption, particularly in the Rockies, where visitation and on-mountain spending faced notable headwinds. Net income attributable to MTN came in at $314.4 million compared with $389.7 million a year ago, underscoring how sharply the operating environment deteriorated relative to a more normal prior-year season.
Profitability also moved lower on a segment basis. Resort Reported EBITDA was $586.4 million, down 9.5% from the prior-year period, as weaker demand flowed through a business with meaningful fixed costs. Still, the advance commitment model continued to provide a stabilizing base compared with a purely walk-up driven season.
Vail Resorts' Liquidity Remains Solid Despite a Tough SeasonEven amid a challenging operating backdrop, the company maintained a sizeable liquidity position. As of April 30, 2026, the company had total cash and revolver availability of approximately $1.1 billion. Capital returns continued as well. The board declared a quarterly cash dividend of $2.22 per share, payable in July, reinforcing the company’s confidence in longer-term cash generation even as near-term performance remains sensitive to weather and the pace of recovery in pass demand.
Cash and cash equivalents as of April 30, 2026, totaled $371.4 million compared with $467 million reported in the year-ago quarter. Net debt was $2.65 billion as of April 30, 2026, compared with $2.24 billion as of April 30, 2025.
MTN Lowers 2026 Outlook, Notes Early Pass SoftnessManagement reduced its fiscal 2026 guidance following the persistent weather headwinds through the third quarter. MTN now expects net income attributable of $128-$162 million, down from the prior outlook of $144-$190 million, and Resort Reported EBITDA of $735-$755 million, down from the earlier outlook of $745-$775 million, incorporating continued cost initiatives and assumptions around the remainder of the year.
Early pass sales for the 2026/2027 North American season were also weaker to date. Through late May, pass units declined about 10%, days sold fell about 8%, and sales dollars decreased roughly 5% year over year, suggesting some near-term demand sensitivity following a difficult season in key western markets.
MTN’s Zacks Rank & Stocks to ConsiderCurrently, Vail Resorts carries a Zacks Rank #5 (Strong Sell).
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The company delivered a trailing four-quarter earnings surprise of 37.9%, on average. HAS stock has moved up 1.9% in the year-to-date period. The Zacks Consensus Estimate for Hasbro’s 2026 sales and EPS indicates an increase of 5.9% and 7.6%, respectively, from the year-ago levels.
Vince Holding Corp. (VNCE - Free Report) currently sports a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 647.2%, on average. VNCE stock has gained 14.5% in the year-to-date period.
The Zacks Consensus Estimate for Vince Holding’s 2026 sales and EPS implies growth of 4.5% and 25%, respectively, from the year-ago levels.
Strategic Education, Inc. (STRA - Free Report) currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 11.2%, on average. STRA stock has gained 0.8% in the year-to-date period.
The Zacks Consensus Estimate for Strategic Education’s fiscal 2026 sales and EPS implies growth of 1.7% and 16.5%, respectively, from the year-ago levels.
Vail Resorts faces deteriorating fundamentals, with declining pass sales, visitation, and revenue, prompting a downgrade to sell. MTN's Q3 revenue fell 7% y/y to $1.21B, with lift ticket revenue down 5.3% and visitation down 15.5%. Season pass units for 2026/2027 dropped 10% y/y, undermining hopes for a near-term turnaround despite management's weather-related explanations.
Investors looking for stocks in the Leisure and Recreation Services sector might want to consider either Carnival (CCL - Free Report) or Vail Resorts (MTN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Carnival has a Zacks Rank of #2 (Buy), while Vail Resorts has a Zacks Rank of #5 (Strong Sell). This means that CCL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CCL currently has a forward P/E ratio of 12.51, while MTN has a forward P/E of 27.58. We also note that CCL has a PEG ratio of 1.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MTN currently has a PEG ratio of 11.17.
Another notable valuation metric for CCL is its P/B ratio of 2.63. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, MTN has a P/B of 5.11.
These are just a few of the metrics contributing to CCL's Value grade of A and MTN's Value grade of C.
CCL has seen stronger estimate revision activity and sports more attractive valuation metrics than MTN, so it seems like value investors will conclude that CCL is the superior option right now.
