At US$148, Is It Time To Put Hyatt Hotels Corporation (NYSE:H) On Your Watch List?

Today we're going to take a look at the well-established Hyatt Hotels Corporation (NYSE:H). The company's stock received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$161 at one point, and dropping to the lows of US$144. 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 Hyatt Hotels' current trading price of US$148 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Hyatt Hotels’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Hyatt Hotels

What Is Hyatt Hotels Worth?

Great news for investors – Hyatt Hotels is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is $223.00, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Hyatt Hotels’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of Hyatt Hotels look like?

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. However, with a negative profit growth of -7.2% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Hyatt Hotels. This certainty tips the risk-return scale towards higher risk.

What This Means For You

Are you a shareholder? Although H is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. We recommend you think about whether you want to increase your portfolio exposure to H, 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 tabs on H for some time, but hesitant on making the leap, we recommend you research further 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.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Our analysis shows 4 warning signs for Hyatt Hotels (1 is concerning!) and we strongly recommend you look at these before investing.

If you are no longer interested in Hyatt Hotels, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com