Rebounding travel will spur these two

Article Excerpt

On June 4, 2018, Wyndham Worldwide (old New York symbol WYN) split into two new companies. For every WYN share investors held, they received one share each of the new companies—Wyndham Hotels and Resorts, and Wyndham Destinations (now called Travel + Leisure). Both stocks continue to rebound from their 2020 lows as travel volumes return to pre-pandemic levels. In fact, Wyndham Hotels is now up 7% since the split, however, Travel + Leisure is now down 21%. Studies show that spinoffs tend to outperform comparable stocks for several years, and we expect this split will ultimately pay off for investors. Moreover, both firms trade at attractive multiples to earnings and are once again raising their dividends. WYNDHAM HOTELS & RESORTS INC. $63 is a buy. The company (New York symbol WH; Consumer Sector; Shares outstanding: 90.3 million; Market cap: $5.7 billion; Dividend yield: 2.0%; Takeover Target Rating: Medium; www.wyndhamhotels.com) is the world’s largest hotel franchiser, with 818,900 rooms spread across 9,000 hotels in 95 countries. Its portfolio…

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