Patrick Scholes

Choice Hotels is Scholes's most-liked lodging name and he recently upgraded it. He expects easier comparisons because its economy consumer segment struggled badly last year, so comparisons are becoming very easy. Sentiment on the stock was horrible by year-end, but the business model is great and recent problems are sector/economy-consumer related rather than company-specific.

Scholes is positive on Vail Resorts despite a tough ski season. Vail has presold more of its Epic Pass than ever, locking in revenue, and has geographically diversified into New England and Europe, where snow has been better. He also sees the return of former CEO Rob Katz, who introduced the Epic Pass, as a potential turnaround catalyst. The stock trades at 9x EBITDA versus underlying asset value of at least 12-13x, and Katz's private-equity background could lead to asset sales or asset-light monetization. He has a buy rating, sees limited downside, and calls it a great value stock, though he sees no immediate catalyst and expects upside may take longer.