12 Worst Depressed Stocks To Buy Now

5. Hyatt Hotels Corporation (NYSE:H)

52 Week Range: 119.30 – 168.20 

Current Share Price: $122.21

Analyst Upside Potential: 31.74%

1-Year Performance: -22.21%

Number of Hedge Fund Holders: 35 

Hyatt Hotels Corporation (NYSE:H) operates as a global hospitality company managing a diverse portfolio of 1,442 hotels and all-inclusive resorts. Its core business involves managing, franchising, and licensing properties across five distinct brand portfolios.

On March 10, Wells Fargo lowered the firm’s price target on the stock to $16 from $17, while keeping an Underweight rating. The firm quoted the recent quarterly results to be discouraging with uncertainty likely to persist. During the fiscal fourth quarter of 2024, Hyatt Hotels Corporation (NYSE:H) announced enhancing its portfolio with notable openings such as Park Hyatt London, River Thames, Grand Hyatt Deer Valley, and Thompson Palm Springs. It also acquired new brands like The Standard and Bahia Principe Hotels, adding to its luxury and lifestyle segments. Moreover, the company also reported system-wide RevPAR (Revenue Per Available Room) growth of 4.6% for 2024, driven by strong demand for its luxury brands. However, despite this, the stock has fallen around 22% over the past 12 months making it one of the worst depressed stocks to buy now.

Baron Focused Growth Fund stated the following regarding Hyatt Hotels Corporation (NYSE:H) in its Q2 2024 investor letter:

“Global hotelier Hyatt Hotels Corporation (NYSE:H) declined 4.7% in the quarter and hurt performance by 29 bps. The disappointing share price performance was due to a deceleration in growth in revenue per available room as a result of modestly slower leisure bookings. However, the company continues to increase its business transient and group bookings, which are now pacing 7% ahead of 2023 levels. These bookings are half of its business today. Robust mid-single-digit growth in units and modest margin expansion should lead to double-digit growth in EBITDA this year. In addition, Hyatt continues to sell assets in its bid to become a more asset-light business. It also has one of the strongest balance sheets in its industry today. All of the above should generate significant free cash flow that Hyatt can use to accelerate share buybacks. Hyatt has repurchased more than 80 million shares since its IPO in 2009! It now has just 100 million shares outstanding. Yet, despite 85% of Hyatt’s cash flow generated by fees, its stock still trades at a discount to peers.”