7 Cheap Travel Stocks to Buy According to Analysts

5) Wyndham Hotels & Resorts, Inc. (NYSE:WH)

Average Upside Potential: 10.78%

Forward P/E as of September 27: 17.21x

Number of Hedge Fund Holdings: 26

Wyndham Hotels & Resorts, Inc. (NYSE:WH) operates as a hotel franchisor in the US and internationally.

The company’s long-term growth trajectory is expected to be aided by its focus on expanding room share in the hotel industry, brand intangible assets, and switching cost advantage. Wyndham Hotels & Resorts, Inc. (NYSE:WH)’s growth strategy revolves around focusing on the economy and mid-scale segments. Its successful expansion strategy and ability to adapt to market demands should continue to act as tailwinds. Wall Street remains optimistic about the resilient and highly cash-generative nature of the company’s business model.

Market experts opine that room growth rates of Wyndham Hotels & Resorts, Inc. (NYSE:WH) are expected to improve. This improvement should stem from factors like ECHO developments, enhanced franchisee retention, and expansion in international markets. Wyndham Hotels & Resorts, Inc. (NYSE:WH) appears to be well-placed to benefit from incremental EBITDA growth drivers, which include the ECHO development program and additional fee streams. In addition, its development team was able to sign 33% more deals than the previous year, resulting in a record global development pipeline.

In Q2 2024, Wyndham Hotels & Resorts, Inc. (NYSE:WH) generated a net income of $86 million as compared to $70 million in Q2 2023. This reflects the company’s higher adjusted EBITDA, a benefit in connection with the reversal of a spin-off-related matter, and a lower effective tax rate. For FY 2024, it expects adjusted EBITDA in the range of $690 million – $700 million.

The Goldman Sachs Group assumed coverage on the shares of Wyndham Hotels & Resorts, Inc. (NYSE:WH) on 18^th September. They gave a “Buy” rating and a price target of $96.00. As per Insider Monkey’s Q2 2024 data, 26 hedge funds were long Wyndham Hotels & Resorts, Inc. (NYSE:WH).