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Strength Seen in Wyndham (WH): Can Its 9.0% Jump Turn into More Strength?
Wyndham Hotels (WH - Free Report) shares ended the last trading session 9% higher at $75.29. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 7.4% loss over the past four weeks.
Shares of Wyndham Hotels & Resorts appreciated after the company rejected Choice Hotels' acquisition bid. One key contention from Wyndham's perspective was the substantial business and execution risks associated with the proposed transaction. The extended regulatory timeline and the uncertainty of the outcome loomed large, which coupled with the potential franchisee churn, made the deal less appealing to Wyndham's Board.
This hotel and resort chain is expected to post quarterly earnings of $1.27 per share in its upcoming report, which represents a year-over-year change of +5%. Revenues are expected to be $396.05 million, down 2.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Wyndham, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on WH going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Wyndham is part of the Zacks Hotels and Motels industry. H World Group (HTHT - Free Report) , another stock in the same industry, closed the last trading session 2.2% lower at $34.89. HTHT has returned -13.1% in the past month.
For H World Group, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.46. This represents a change of +243.8% from what the company reported a year ago. H World Group currently has a Zacks Rank of #3 (Hold).