Stock of the Day

October 14, 2021

H World Group (HTHT)

$45.94
+$1.74 (+3.9%)
Market Cap: $13.59B

About H World Group

H World Group Limited develops leased and owned, manachised, and franchised hotels in the People's Republic of China. The company operates hotels under its own brands, such as HanTing Hotel, Ni Hao Hotel, Hi Inn, Elan Hotel, Zleep Hotels, Ibis Hotel, JI Hotel, Orange Hotel, Starway Hotel, Ibis Styles Hotel, CitiGO Hotel, Crystal Orange Hotel, IntercityHotel, Manxin Hotel, Mercure Hotel, Madison Hotel, Novotel Hotel, Joya Hotel, Blossom House, Steigenberger Hotels & Resorts, MAXX by Steigenberger, Jaz in the City, Grand Mercure, Steigenberger Icon, and Song Hotels. The company was formerly known as Huazhu Group Limited and changed its name to H World Group Limited in June 2022. H World Group Limited was founded in 2005 and is headquartered in Shanghai, the People's Republic of China.

Today's Trend

H World Group Limited Sponsored ADR (NASDAQ: HTHT) reported strong second-quarter results, but the stock’s mixed-to-lower reaction likely reflects investor profit-taking and a revenue outlook that is broadly in line with expectations.

  • Second-quarter adjusted earnings were $0.78 per share, ahead of the $0.74 analyst consensus and up from $0.59 a year earlier. Revenue reached $1.05 billion, exceeding expectations of approximately $998.9 million. H World Group Second-Quarter Results
  • Growth was led by the manachised and franchised business, where revenue increased 25%. A separate analysis characterized the quarter as a roughly 5% top-line beat and said the company raised the midpoint of its 2026 sales-growth outlook from 4% to 6%, supported by hotel asset upgrades, a strong development backlog and additional expansion potential in China. H World Group Beat-and-Raise Analysis
  • H World announced a new shareholder-return plan, including a dividend of $0.87 per share payable September 22 to shareholders of record September 8. The distribution may support investor sentiment and signals confidence in cash generation.
  • Wall Street’s average price target implies approximately 39.7% potential upside, while positive earnings-estimate revisions could provide an additional catalyst. H World Group Analyst Price Targets
  • Full-year 2026 revenue guidance of $3.8 billion to $3.9 billion is near consensus, with the midpoint slightly below the $3.9 billion analyst estimate. The improved growth rate and solid quarterly execution are favorable, but the outlook may not represent a large enough upside surprise for all investors.

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