Last Updated: 13 Nov 2024
Executive Summary
Wyndham Hotels & Resorts Inc. (WH) is a global hotel franchisor with a market capitalization of $7.67 billion. The company has a strong financial performance with an EBITDA of $609 million and a profit margin of 18.3%. WH is currently trading at $98.57, slightly below its 52-week high of $98.73. Analysts are bullish on the stock, with five strong buy ratings and eight buy ratings.
Company Overview
Wyndham Hotels & Resorts is one of the world's largest hotel franchisors, with over 9,000 hotels in 95 countries. The company's brands include Wyndham, Ramada, Days Inn, Super 8, and La Quinta. WH operates a franchise model, in which it licenses its brands and provides support services to hotel owners.
Fundamental Analysis
Revenue: WH's revenue has grown steadily in recent years, reaching $1.38 billion in the last twelve months. The company's revenue is expected to continue to grow in the future, driven by the expansion of its global footprint and the increasing demand for hotel accommodations.
Earnings: WH's earnings per share (EPS) has also grown in recent years, reaching $3.16 in the last twelve months. The company's EPS is expected to continue to grow in the future, driven by the company's revenue growth and cost-cutting initiatives.
Profitability: WH's profit margin is 18.3%, which is higher than the industry average. The company's profitability is expected to continue to improve in the future, driven by the company's cost-cutting initiatives and the increasing demand for hotel accommodations.
Balance Sheet: WH has a strong balance sheet with $1.5 billion in cash and equivalents and $2.5 billion in debt. The company's debt-to-equity ratio is 0.67, which is below the industry average.
Technical Analysis
Trend: WH's stock price is currently in an uptrend. The stock has been trading above its 50-day and 200-day moving averages for the past several months.
Support and Resistance: The stock's support level is at $82.45, which is the 50-day moving average. The stock's resistance level is at $98.73, which is the 52-week high.
Momentum: The stock's momentum is positive. The relative strength index (RSI) is above 50, which indicates that the stock is overbought.
Short Term Outlook
In the short term, WH's stock price is expected to continue to rise. The stock is currently trading above its support level and has positive momentum. The stock's resistance level is at $98.73, which is the 52-week high. If the stock can break through this resistance level, it could continue to rise to $100 or more.
Long Term Outlook
In the long term, WH's stock price is expected to continue to grow. The company has a strong financial performance and is well-positioned to benefit from the increasing demand for hotel accommodations. The company's expansion into new markets and its cost-cutting initiatives are expected to drive growth in the future.
Analyst Recommendations
Analysts are bullish on WH's stock. Five analysts have given the stock a strong buy rating, and eight analysts have given the stock a buy rating. The average analyst target price is $94.2.
