Latest news with #CHH
Yahoo
5 days ago
- Business
- Yahoo
3 Profitable Stocks Showing Warning Signs
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages. Just because a business is in the green today doesn't mean it will thrive tomorrow. Profits are valuable, but they're not everything. At StockStory, we help you identify the companies that have real staying power. That said, here are three profitable companies to steer clear of and a few better alternatives. Trailing 12-Month GAAP Operating Margin: 18.4% Based in Long Island City, Altice USA (NYSE:ATUS) is a telecommunications company offering cable, internet, telephone, and television services across the United States. Why Do We Think ATUS Will Underperform? Demand for its offerings was relatively low as its number of broadband subscribers has underwhelmed Sales were less profitable over the last five years as its earnings per share fell by 27.4% annually, worse than its revenue declines Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution Altice's stock price of $2.32 implies a valuation ratio of 0.3x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than ATUS. Trailing 12-Month GAAP Operating Margin: 30.5% With almost 100% of its properties under franchise agreements, Choice Hotels (NYSE:CHH) is a hotel franchisor known for its diverse brand portfolio including Comfort Inn, Quality Inn, and Clarion. Why Do We Avoid CHH? Revenue per room has disappointed over the past two years due to weaker trends in its daily rates and occupancy levels Demand is forecasted to shrink as its estimated sales for the next 12 months are flat Waning returns on capital imply its previous profit engines are losing steam At $126.92 per share, Choice Hotels trades at 18.1x forward P/E. If you're considering CHH for your portfolio, see our FREE research report to learn more. Trailing 12-Month GAAP Operating Margin: 13.9% With roots dating back to 1807 when Charles Wiley opened a small printing shop in Manhattan, John Wiley & Sons (NYSE:WLY) is a global academic publisher that provides scientific journals, books, digital courseware, and knowledge solutions for researchers, students, and professionals. Why Should You Dump WLY? Sales tumbled by 1.6% annually over the last five years, showing market trends are working against its favor during this cycle Earnings per share were flat over the last two years and fell short of the peer group average Free cash flow margin dropped by 4.3 percentage points over the last five years, implying the company became more capital intensive as competition picked up Wiley is trading at $39.30 per share, or 16.3x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including WLY in your portfolio, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
Yahoo
20-05-2025
- Business
- Yahoo
3 Low-Volatility Stocks in the Doghouse
Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies. Finding the right balance between safety and returns isn't easy, which is why StockStory is here to help. Keeping that in mind, here are three low-volatility stocks that don't make the cut and some better opportunities instead. Rolling One-Year Beta: 0.81 With a strong presence in the Western US, Lithia Motors (NYSE:LAD) sells a wide range of vehicles, including new and used cars, trucks, SUVs, and luxury vehicles from various manufacturers. Why Does LAD Fall Short? Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations Gross margin of 15.9% is below its competitors, leaving less money for marketing and promotions High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens Lithia's stock price of $323.58 implies a valuation ratio of 9.2x forward P/E. Read our free research report to see why you should think twice about including LAD in your portfolio, it's free. Rolling One-Year Beta: 0.58 With almost 100% of its properties under franchise agreements, Choice Hotels (NYSE:CHH) is a hotel franchisor known for its diverse brand portfolio including Comfort Inn, Quality Inn, and Clarion. Why Is CHH Risky? Revenue per room has underperformed over the past two years, suggesting it may need to develop new facilities Projected sales are flat for the next 12 months, implying demand will slow from its two-year trend Eroding returns on capital suggest its historical profit centers are aging At $130.69 per share, Choice Hotels trades at 18.6x forward P/E. If you're considering CHH for your portfolio, see our FREE research report to learn more. Rolling One-Year Beta: 0.69 With its name reflecting the mathematical term for "whole" or "complete," Integer Holdings (NYSE:ITGR) is a medical device outsource manufacturer that produces components and systems for cardiac, vascular, neurological, and other medical applications. Why Are We Wary of ITGR? Sales trends were unexciting over the last five years as its 6.5% annual growth was below the typical healthcare company Smaller revenue base of $1.75 billion means it hasn't achieved the economies of scale that some industry juggernauts enjoy Free cash flow margin shrank by 7.7 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive Integer Holdings is trading at $120.99 per share, or 19.2x forward P/E. To fully understand why you should be careful with ITGR, check out our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Choice Hotels International, Inc. (CHH): One of the Underperforming Stocks Targeted By Short Sellers
We recently published a list of . In this article, we are going to take a look at where Choice Hotels International, Inc. (NYSE:CHH) stands against other underperforming stocks targeted by short sellers. Short interest refers to the percentage of publicly available shares that have been sold short. It is an indicator used by many investors to determine how strong a company's bear thesis may be. Due to the nature of short selling, the short interest has become a popular indicator among investors. The reason it is given so much weightage is that people betting against a stock have usually done solid research and are confident of a company's downfall. They take unlimited risk, so when big investors or the smart money shorts a stock, people take notice. They try to unearth the red flags that may have prompted the high short interest. We decided to dig deeper and try to find out where smart money sees trouble ahead. To come up with our list of 20 underperforming stocks targeted by short sellers, we looked at the worst-performing stocks of the last six months and then ranked them by the short interest. A hotel lobby in vibrant colors, reflecting the hospitality and global presence of the hotel franchising company. Short interest: 14.22% 6 months' performance: -33.6% Choice Hotels International, Inc. (NYSE:CHH) is a hotel franchisor. The company operates in two segments: Hotel Franchising & Management and Corporate & Other. It franchises lodging properties under the Comfort Suites, Sleep Inn, Econo Lodge, WoodSpring Suites, Comfort Inn, Radisson RED, and other brand names. The firm reported strong Q4 results, beating management's earnings guidance. Choice Hotels (NYSE:CHH) grew its net income by 16% and diluted EPS by 22%. Adjusted EBITDA set a new benchmark of growing 12% YoY. The leisure & business travel segment led a significant growth, with business travel accounting for 40% of the overall mix. Despite solid earnings, the company's 2025 outlook raises concerns. As per the guidance, projected net income for 2025 is $288-300MM with adjusted EBITDA ranging between $625-$640MM. However, achieving these targets is challenging due to the current economic uncertainty. Business travel growth may be impacted due to potential government layoffs and ongoing business uncertainty. Choice Hotels (NYSE:CHH) also offers the possibility for guests to earn airline miles, but the recent poor guidance by Delta Air Lines means these rewards are also unlikely to attract customers. Overall, CHH ranks 19th on our list of underperforming stocks targeted by short sellers. While we acknowledge the potential of CHH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CHH but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-04-2025
- Business
- Yahoo
3 Cash-Producing Stocks Facing Headwinds
A company that generates cash isn't automatically a winner. Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand. Not all companies are created equal, and StockStory is here to surface the ones with real upside. That said, here are three cash-producing companies to avoid and some better opportunities instead. Trailing 12-Month Free Cash Flow Margin: 11% With almost 100% of its properties under franchise agreements, Choice Hotels (NYSE:CHH) is a hotel franchisor known for its diverse brand portfolio including Comfort Inn, Quality Inn, and Clarion. Why Do We Think Twice About CHH? Softer revenue per room over the past two years suggests it might have to invest in new amenities such as restaurants and bars to attract customers Estimated sales growth of 3.5% for the next 12 months implies demand will slow from its two-year trend Diminishing returns on capital suggest its earlier profit pools are drying up At $124.01 per share, Choice Hotels trades at 17.2x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than CHH. Trailing 12-Month Free Cash Flow Margin: 5.8% Owner of Ticketmaster and operator of music festival EDC, Live Nation (NYSE:LYV) is a company specializing in live event promotion, venue management, and ticketing services for concerts and shows. Why Are We Hesitant About LYV? Demand for its offerings was relatively low as its number of events has underwhelmed Operating margin of 4.2% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments ROIC of 8.8% reflects management's challenges in identifying attractive investment opportunities Live Nation is trading at $131.99 per share, or 40.8x forward price-to-earnings. Check out our free in-depth research report to learn more about why LYV doesn't pass our bar. Trailing 12-Month Free Cash Flow Margin: 5.3% Covering billions of miles throughout North America, Landstar (NASDAQ:LSTR) is a transportation company specializing in freight and last-mile delivery services. Why Is LSTR Risky? Annual sales declines of 19.4% for the past two years show its products and services struggled to connect with the market during this cycle Incremental sales over the last five years were less profitable as its earnings per share were flat while its revenue grew Waning returns on capital imply its previous profit engines are losing steam Landstar's stock price of $140 implies a valuation ratio of 21.2x forward price-to-earnings. Read our free research report to see why you should think twice about including LSTR in your portfolio, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
16-04-2025
- Business
- Yahoo
Goldman Sachs Cuts Outlook For These Hotel And Lodging Stocks As Potential Recession Looms
Goldman Sachs analyst Lizzie Dove downgraded the outlook for U.S. Lodging C-Corps and Timeshares due to weaker consumer demand, geopolitical uncertainty, and negative impacts from U.S. airlines. As a result, 2025 RevPAR forecasts are being lowered by approximately 125 basis points. Key challenges include a decline in Canadian tourism and reduced government travel, which are expected to impact U.S. RevPAR negatively. Although a recession scenario isn't fully factored in, a 45% probability of a U.S. recession is assumed. The focus is on asset-light companies with global exposure and less reliance on U.S. resorts, as the decline in IMF and non-RevPAR fees has yet to be priced in, said the analyst. Also Read: In a choppier macro environment, the preference is for stocks with more global diversity, lower U.S. resort exposure, asset-light business models, and stronger prospects for non-RevPAR and ancillary revenues. Historical context shows that lodging revenue growth has been cyclical, with significant downturns during previous recessions, where business demand impacts leisure travel first, and premium chains see larger RevPAR declines than economy chains, the analyst opined. Hotel C-Corps have shifted to asset-light, fee-based business models in the past decade, which have shown resilience during downturns, as franchise revenues tend to fare better than owned/leased or timeshare revenues. Incentive management fees (IMFs) are highly volatile, with U.S. IMF contracts more binary, impacting US properties more than international ones. While consumer pressures in a downturn could impact credit card fees, supply growth for 2025 is unlikely to be threatened. However, the outlook for 2026 and beyond could face risks due to rising construction costs and economic uncertainty. The analyst upgraded the shares of Choice Hotels International Inc (NYSE:CHH) from Sell to Buy and lowered the price forecast from $141 to $138. The upgrade was done due to its defensive position, primarily driven by its franchise revenue structure and strong balance sheet, which makes it more resilient amid economic uncertainty. CHH is less affected by the current macroeconomic challenges compared to other US lodging companies, with most of its customers originating from the US, and minimal exposure to international tourism, particularly from Canada. Recent data shows improving trends for CHH, with steady consumer purchase intent and better performance, especially among lower-income customer segments, despite broader concerns about consumer confidence. The analyst downgraded the shares of Hyatt Hotels Corporation (NYSE:H) from Neutral to Sell and lowered the price forecast from $150.00 to $110.00. Hyatt displays higher macro sensitivity, driven by factors such as a larger share of management contracts, significant exposure to China, and a more limited pipeline for in-construction growth. Despite Hyatt's shift to a more asset-light model, it remains more exposed to macro-sensitive segments compared to peers, including a higher percentage of managed footprint, IMF fees, and exposure to the Chinese market, said the analyst. The analyst downgraded Hilton Worldwide Holdings (NYSE:HLT) stock from Buy to Neutral and lowered the price forecast from $296 to $235. The analyst also downgraded the shares of Marriott International Inc (NASDAQ:MAR) from Buy to Neutral and lowered the price forecast from $313.00 to $245.00. Hilton Worldwide and Marriott International are downgraded due to macro volatility and consumer pressures, which are expected to negatively impact macro-sensitive segments like IMF, credit card revenues, and owned & leased properties. Both companies have strong business models with resilient balance sheets, but their valuations remain high compared to historical cycles (2016-2019), and consensus estimates, especially for IMF and non-RevPAR fees, are considered too optimistic. Since their inclusion in the Buy list in September 2024, both MAR and HLT stocks have underperformed, with recent negative signals about consumer health and travel impacting their performance relative to the S&P 500. Read Next:Photo via Shutterstock Date Firm Action From To Feb 2022 Wells Fargo Maintains Equal-Weight Feb 2022 Macquarie Maintains Neutral Feb 2022 Raymond James Maintains Outperform View More Analyst Ratings for HLT View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? HILTON WORLDWIDE HOLDINGS (HLT): Free Stock Analysis Report MARRIOTT INTERNATIONAL (MAR): Free Stock Analysis Report CHOICE HOTELS INTL (CHH): Free Stock Analysis Report HYATT HOTELS (H): Free Stock Analysis Report This article Goldman Sachs Cuts Outlook For These Hotel And Lodging Stocks As Potential Recession Looms originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
