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At US$61.35, Is Wyndham Hotels & Resorts, Inc. (NYSE:WH) Worth Looking At Closely?

Simply Wall St ·  Oct 2, 2022 10:10

While Wyndham Hotels & Resorts, Inc. (NYSE:WH) might not be the most widely known stock at the moment, it saw significant share price movement during recent months on the NYSE, rising to highs of US$72.36 and falling to the lows of US$59.22. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Wyndham Hotels & Resorts' current trading price of US$61.35 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Wyndham Hotels & Resorts's outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for Wyndham Hotels & Resorts

What Is Wyndham Hotels & Resorts Worth?

Great news for investors – Wyndham Hotels & Resorts is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $83.48, but it is currently trading at US$61.35 on the share market, meaning that there is still an opportunity to buy now. What's more interesting is that, Wyndham Hotels & Resorts's share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Can we expect growth from Wyndham Hotels & Resorts?

earnings-and-revenue-growthNYSE:WH Earnings and Revenue Growth October 2nd 2022

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. Though in the case of Wyndham Hotels & Resorts, it is expected to deliver a negative earnings growth of -5.0%, which doesn't help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.

What This Means For You

Are you a shareholder? Although WH is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. Consider whether you want to increase your portfolio exposure to WH, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you've been keeping an eye on WH for a while, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Be aware that Wyndham Hotels & Resorts is showing 3 warning signs in our investment analysis and 1 of those is a bit concerning...

If you are no longer interested in Wyndham Hotels & Resorts, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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