U.S. Markets closed
  • S&P Futures

    3,811.75
    +17.75 (+0.47%)
     
  • Dow Futures

    30,436.00
    +126.00 (+0.42%)
     
  • Nasdaq Futures

    11,690.75
    +67.00 (+0.58%)
     
  • Russell 2000 Futures

    1,777.40
    +9.40 (+0.53%)
     
  • Crude Oil

    87.90
    +0.14 (+0.16%)
     
  • Gold

    1,730.00
    +9.20 (+0.53%)
     
  • Silver

    20.79
    +0.25 (+1.20%)
     
  • EUR/USD

    0.9916
    -0.0070 (-0.7040%)
     
  • 10-Yr Bond

    3.7590
    +0.1420 (+3.93%)
     
  • Vix

    28.55
    -0.52 (-1.79%)
     
  • GBP/USD

    1.1355
    -0.0120 (-1.0458%)
     
  • USD/JPY

    144.6700
    +0.4710 (+0.3266%)
     
  • BTC-USD

    20,391.92
    +178.82 (+0.88%)
     
  • CMC Crypto 200

    463.36
    +4.95 (+1.08%)
     
  • FTSE 100

    7,052.62
    -33.84 (-0.48%)
     
  • Nikkei 225

    27,351.17
    +230.64 (+0.85%)
     

Why H World Group Limited (NASDAQ:HTHT) Could Be Worth Watching

·3 min read

Let's talk about the popular H World Group Limited (NASDAQ:HTHT). The company's shares saw a significant share price rise of over 20% in the past couple of months on the NASDAQGS. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s examine H World Group’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for H World Group

What is H World Group worth?

Great news for investors – H World Group is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $66.51, but it is currently trading at US$40.00 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, H World Group’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What kind of growth will H World Group generate?

earnings-and-revenue-growth
earnings-and-revenue-growth

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. In H World Group's case, its revenues over the next few years are expected to grow by 47%, indicating a highly optimistic future ahead. If expense does not increase by the same rate, or higher, this top line growth should lead to stronger cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? Since HTHT is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on HTHT for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy HTHT. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

Diving deeper into the forecasts for H World Group mentioned earlier will help you understand how analysts view the stock going forward. Luckily, you can check out what analysts are forecasting by clicking here.

If you are no longer interested in H World Group, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here