Rating Change #8
Wyndham Worldwide Corporation (WYN) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Hotels, Restaurants & Leisure industry average. The net income increased by 44.0% when compared to the same quarter one year prior, rising from $50.00 million to $72.00 million.
- WYNDHAM WORLDWIDE CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, WYNDHAM WORLDWIDE CORP increased its bottom line by earning $2.05 versus $1.61 in the prior year. This year, the market expects an improvement in earnings ($2.27 versus $2.05).
- Powered by its strong earnings growth of 51.85% and other important driving factors, this stock has surged by 47.50% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, WYN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- WYN's revenue growth has slightly outpaced the industry average of 0.8%. Since the same quarter one year prior, revenues slightly increased by 7.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
Wyndham Worldwide Corporation, together with its subsidiaries, provides various hospitality products and services to individual consumers and business customers in the United States and internationally. The company has a P/E ratio of 15.9, equal to the average leisure industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Wyndham Worldwide has a market cap of $5.9 billion and is part of the services sector and leisure industry. Shares are up 16.2% year to date as of the close of trading on Wednesday.You can view the full Wyndham Worldwide Ratings Report or get investment ideas from our investment research center.
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