• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Rising EPS and Aggressive Buybacks Might Change The Case For Investing In Travel + Leisure (TNL)

    Simply Wall St·08/01/2026 19:24:30
    Listen to the news
    • In July 2026, Travel + Leisure Co. reported its second‑quarter 2026 results, showing year‑over‑year increases in sales, revenue, net income and earnings per share, and confirmed that it had repurchased 1,259,003 shares for US$87.5 million between April 1 and June 30.
    • This latest tranche brought total buybacks under the program launched in February 2010 to 137,447,606 shares for about US$7.06 billion, underscoring the company’s long‑running focus on returning capital to shareholders while growing earnings.
    • We’ll now examine how the combination of higher earnings per share and ongoing share repurchases may influence Travel + Leisure’s investment narrative.

    Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 29 best rare earth metal stocks of the very few that mine this essential strategic resource.

    Travel + Leisure Investment Narrative Recap

    To own Travel + Leisure, you need to believe its vacation ownership and travel brands can keep turning a highly recurring revenue base into consistent earnings, even as competition and industry shifts pressure growth. The latest quarter’s modest EPS increase, together with continued buybacks, supports the near term catalyst of per share earnings growth, but does little to resolve the key risk that heavy dependence on vacation ownership and a leveraged balance sheet could amplify any downturn in demand.

    The recent confirmation that Travel + Leisure repurchased 1,259,003 shares in the second quarter of 2026, bringing total buybacks since 2010 to 137,447,606 shares, directly ties into this story. Together with higher basic EPS of US$1.75 in the quarter, the capital return program highlights how much of the current investment case rests on shrinking the share count while earnings grow, even as broader risks in its Travel and Membership and core timeshare segments remain in focus.

    Yet against this backdrop of steady buybacks and EPS growth, you should also be aware of how concentrated the business still is in US vacation ownership and what happens if...

    Read the full narrative on Travel + Leisure (it's free!)

    Travel + Leisure's narrative projects $4.4 billion revenue and $868.7 million earnings by 2029. This requires 2.6% yearly revenue growth and about a $632.7 million earnings increase from $236.0 million today.

    Uncover how Travel + Leisure's forecasts yield a $87.08 fair value, a 15% upside to its current price.

    Exploring Other Perspectives

    TNL 1-Year Stock Price Chart
    TNL 1-Year Stock Price Chart

    Some of the lowest ranked analysts were already cautious, assuming revenue of about US$4.2 billion and earnings near US$818 million by 2029, and their focus on climate and regulatory risks around travel shows just how differently you might weigh today’s buyback and EPS news against concerns about long term demand and margin stability.

    Explore 4 other fair value estimates on Travel + Leisure - why the stock might be worth as much as 54% more than the current price!

    The Verdict Is Yours

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

    No Opportunity In Travel + Leisure?

    The market won't wait. These fast-moving stocks are hot now. Grab the list before they run:

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.