Travel + Leisure: Improved Sales And Loan Quality Provide Further Upside

  • Travel + Leisure's core vacation ownership business is delivering strong sales growth, offsetting weakness in its exchange segment and supporting recurring revenue resilience. Loan quality is improving thanks to tightened lending standards, with high FICO scores and strong reserves, reducing future credit risk and provisioning needs. Solid free cash flow and a healthy balance sheet enable robust capital returns through buybacks and a secure 3.6% dividend yield, enhancing shareholder value.