Stock Analysis

Should You Think About Buying Wyndham Hotels & Resorts, Inc. (NYSE:WH) Now?

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NYSE:WH
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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.

See our latest analysis for Wyndham Hotels & Resorts

Is Wyndham Hotels & Resorts Still Cheap?

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, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Although, there may be another chance to buy again in the future. This is because Wyndham Hotels & Resorts’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What kind of growth will Wyndham Hotels & Resorts generate?

earnings-and-revenue-growth
NYSE:WH Earnings and Revenue Growth October 3rd 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. However, with a negative profit growth of -5.0% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Wyndham Hotels & Resorts. This certainty tips the risk-return scale towards higher risk.

What This Means For You

Are you a shareholder? Although WH is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher 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 tabs on WH for some time, but hesitant on making the leap, I 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.

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. For example, we've found that Wyndham Hotels & Resorts has 3 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.

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.

Valuation is complex, but we're helping make it simple.

Find out whether Wyndham Hotels & Resorts is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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