Wyndham Worldwide Corporation (WYN) Falls Further As It's Water-Logged And Getting Wetter

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Wyndham Worldwide Corporation ( WYN) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Wyndham Worldwide Corporation as such a stock due to the following factors:

  • WYN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $99.8 million.
  • WYN has traded 1.2 million shares today.
  • WYN traded in a range 214.2% of the normal price range with a price range of $3.67.
  • WYN traded below its daily resistance level (quality: 85 days, meaning that the stock is crossing a resistance level set by the last 85 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on WYN:

Wyndham Worldwide Corporation, together with its subsidiaries, provides various hospitality services and products to individual consumers and business customers in the United States and internationally. The stock currently has a dividend yield of 1.7%. WYN has a PE ratio of 22.2. Currently there are 6 analysts that rate Wyndham Worldwide Corporation a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Wyndham Worldwide Corporation has been 1.1 million shares per day over the past 30 days. Wyndham Worldwide has a market cap of $9.1 billion and is part of the services sector and leisure industry. Shares are down 1.8% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Wyndham Worldwide Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, attractive valuation levels, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 3.4%. Since the same quarter one year prior, revenues rose by 12.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 26.12% and other important driving factors, this stock has surged by 28.15% 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.
  • WYNDHAM WORLDWIDE CORP has improved earnings per share by 26.1% 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 $2.77 versus $2.53 in the prior year. This year, the market expects an improvement in earnings ($3.82 versus $2.77).
  • 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 16.3% when compared to the same quarter one year prior, going from $160.00 million to $186.00 million.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, WYNDHAM WORLDWIDE CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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