Is It Too Late To Consider Buying Wyndham Hotels & Resorts, Inc. (NYSE:WH)?

Wyndham Hotels and Resorts (NYSE: WH) may not be a big capital stock, but it has gotten a lot of attention from the big price hike on the NYSE over the past few months. With so many analysts covering mid-cap stocks, we might expect that any price-sensitive announcements have already been factored into the stock’s share price. However, can the stock continue to trade relatively cheaply? Let’s take a look at Wyndham Hotels & Resorts’ view and value based on the latest financial statements to see if the opportunity still exists.

View our latest analysis of Wyndham Hotels & Resorts

Are Wyndham Hotels & Resorts Still Cheap?

The stock appears to be a fair value at the moment according to my valuation model. It’s trading about 8.79% above its true value, which means if you buy Wyndham Hotels & Resorts today, you’ll pay a relatively reasonable price for it. And if you think the real value of the company is $78.69, there is only a slight downside when the price drops to its true value. So is there another opportunity to buy at a low price in the future? Given that the share of Wyndham Hotels & Resorts is somewhat volatile (ie their price movements are amplified compared to the rest of the market), this could mean that the price could drop, giving us an opportunity to buy later. This is based on the high beta level, which is a good indicator of the volatility of the stock price.

What kind of growth will Wyndham Hotels & Resorts achieve?

Profit and revenue growth
NYSE: WH Earnings and Revenue Growth on November 26, 2021

The outlook is an important aspect when looking to buy a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a strong future outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future outlook. With earnings growth expected of 81% over the next two years, the future looks bright for Wyndham Hotels & Resorts. The higher cash flow appears to be on the stock cards, which should fuel a higher stock valuation.

What does this mean for you:

Are you a contributor? WH’s optimistic future growth appears to be factored into the current stock price, as the shares are trading around their fair value. However, there are also other important factors that we did not take into account today, such as the track record of the management team. Have these factors changed since the last time you looked at the stock? Would you have enough confidence to invest in the company if the price fell below its fair value?

Are you a potential investor? If you’ve been keeping tabs on WH, now might not be the most useful time to buy, since it’s trading around its fair value. However, the positive outlook is encouraging for the company, which means it deserves further consideration of other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

So if you want to dig deeper into this stock, it is crucial to consider any risks you face. To this end, you must learn about 3 warning signs We found out with Wyndham Hotels & Resorts (including one you can’t ignore).

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

This article by Simply Wall St is general in nature. We provide comments based only on historical data and analyst expectations 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, nor does it take into account your objectives or financial situation. We aim to provide you with focused, long-term analysis driven by essential data. Note that our analysis may not include the company’s most recent price-sensitive ads or quality materials. Wall Street simply has no position in any of the stocks mentioned.

Do you have feedback on this article? Worried about the content? keep in touch with us directly. Alternatively, email the editorial team (at) simplewallst.com.

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