HTHT

H World Group Ltd (ADR) Analysis: H World Group Ltd (HTHT) has received a 66% rating using the P/B Growth Investor model by Partha Mohanram, indicating it is a promising growth stock in the Hotels & Motels industry, with scores above 80% suggesting strong interest.

Partha Mohanram's Contribution: Partha Mohanram, a notable academic in value investing, developed a growth model that challenges traditional views on growth investing, demonstrating significant market outperformance through his research on low book-to-market stocks.

Hospitality Industry Growth: The hospitality industry is experiencing rapid growth, contributing significantly to the global economy with a projected market value of $4.9 trillion in 2024 and an expected annual growth rate of 5.8% through 2032, despite challenges from the COVID-19 pandemic.

H World Group Limited Performance: H World Group Limited (NASDAQ:HTHT) ranks as one of the top hospitality stocks favored by hedge funds, showing strong sales growth and operational strength, while also planning significant expansion with new hotel openings and share repurchases.

Major Earnings Reports: Key companies reporting earnings after the market close on Thursday include Micron Technology, NIKE, FedEx Corporation, Luminar Technologies, and Ouster.

Additional Earnings Releases: Other companies expected to release their earnings include CIG, HTHT, IDN, LEN, MGNX, PL, QUBT, RKDA, RWAY, SKYE, and VXRT.

Financial Performance: H World Group reported a 7.8% year-on-year revenue increase in Q4 2024, totaling RMB6.0 billion (US$825 million), with full-year revenue rising 9.2% to RMB23.9 billion (US$3.3 billion) and adjusted EBITDA reaching RMB1.2 billion (US$171 million) for Q4.

Expansion and Growth Strategy: The company opened a record 2,442 new hotels in 2024, achieving over 11,000 total hotels, while enhancing its loyalty program with 267 million members and focusing on asset-light growth and operational efficiency for future development.

Revenue Growth Expectations: H World Group Limited anticipates revenue growth of 0%-4% for Q1 2025 and 2%-6% for the full year, with plans to open approximately 2,300 hotels and close around 600 hotels in 2025.

Fourth Quarter Financial Performance: The company reported a net income of RMB 49 million for Q4 2024, a significant decrease from RMB 743 million in Q4 2023, despite a 7.8% increase in revenue to RMB 6.0 billion.

Earnings Reports Overview: Several companies, including Accenture, PDD Holdings, and Darden Restaurants, are set to report earnings on March 20, 2025, with varying forecasts indicating increases or decreases in earnings per share compared to the previous year.

Performance Insights: Companies like FactSet and Jabil have shown consistent performance, while others like Commercial Metals and Academy Sports are expected to see significant declines in earnings, reflecting mixed results across different sectors.

Major Earnings Reports: Key companies expected to report earnings before the market opens on Thursday include Accenture, Baozun, Darden Restaurants, Jabil, and PDD Holdings.

Additional Earnings Releases: Other companies scheduled to release their earnings prior to Thursday's opening include ADAP, ASO, AUTL, CAL, CMC, DBI, FDS, HTHT, IFRX, KNOP, RMTI, TITN, VEON, and XXII.

Financial Results Announcement: H World Group Limited will release its unaudited financial results for Q4 and full year 2024 on March 20, 2025, followed by a conference call at 8 a.m. U.S. Eastern time.

Company Overview: H World operates over 10,800 hotels across 18 countries, utilizing various business models including leased, owned, manachised, and franchised hotels, with a significant majority (91%) under the manachise and franchise model.

Analyst Downgrade: HSBC analyst Lina Yan has downgraded H World (HTHT) from Buy to Hold, setting a price target of $32.40.

Investment Insights Tool: TipRanks offers a Smart Score tool to help investors make informed decisions by comparing stock picks with top Wall Street analysts' recommendations.

iShares MSCI China ETF Performance: The iShares MSCI China ETF is underperforming, down approximately 1% in Monday afternoon trading.

Weakest Components: Notable declines among its components include Qifu Technology, which fell by about 4.4%, and H World Group, which decreased by around 2.1%.

52 Week Range and Current Share Price: IEMG's share price has a 52-week low of $47.335 and a high of $59, with the latest trade at $52.59, which can be analyzed against its 200-day moving average.

ETFs Trading Mechanism: Exchange traded funds (ETFs) operate like stocks, trading "units" that can be created or destroyed based on investor demand, impacting the underlying holdings significantly during notable inflows or outflows.

ETF Performance: The Invesco Dorsey Wright Technology Momentum ETF is down approximately 4.7%, with Applovin and Zeta Global Holdings experiencing significant declines of 14.7% and 7.9%, respectively.

Author's Opinion Disclaimer: The views expressed in the article are solely those of the author and do not necessarily represent Nasdaq, Inc.

Worst Performing Stocks: Eleven large-cap stocks experienced significant declines last week, with Symbotic Inc. leading the drop at 25.83% due to a revenue outlook cut, followed by Grab Holdings and Reddit, which also saw notable decreases.

Analyst Downgrades Impacting Stocks: Several companies, including Banco Bradesco and Dell Technologies, faced downgrades from analysts, contributing to their stock price declines, while Nutanix and Autodesk reported mixed financial results that led to revised forecasts.

Q3 2024 Earnings Call: H World Group Limited held its third quarter earnings conference call on November 26, 2024, featuring key executives including the CEO and CFO, discussing financial results and future outlooks while addressing potential risks.

Forward-Looking Statements: The call included forward-looking statements under the safe harbor provision, highlighting inherent risks and uncertainties that could affect the company's performance, with reconciliations of adjusted financial measures provided in their earnings release.

Analyst Rating Changes: Several Wall Street analysts have adjusted their price targets and ratings for various companies, including Autodesk, Kohl's, and Kroger, with notable upgrades and downgrades reflecting market performance expectations.

Stock Performance Insights: Analysts from firms like BMO Capital, Baird, and Citigroup provided updates on stocks such as Iris Energy and Urban Outfitters, indicating mixed sentiments with some stocks receiving higher targets while others faced reductions.

Q3 Financial Performance: H World Group Limited reported a 2.4% year-over-year increase in total revenue to RMB6.4 billion for Q3 2024, with stable net income of RMB1.3 billion despite restructuring costs and a slight decrease in adjusted EBITDA.

Future Growth Outlook: The company plans to continue its expansion with 774 new hotel openings in Q3 and anticipates revenue growth of 1% to 5% in Q4 2024, focusing on sustainable growth in lower-tier Chinese cities and international markets.

Third Quarter Performance: H World Group Limited reported third-quarter results that fell short of analyst expectations, with adjusted earnings per ADS at 61 cents and quarterly sales of $918 million, both missing consensus estimates. Revenue from leased and owned hotels declined by 4.8% year-over-year, while revenue from manachised and franchised hotels grew by 14.7%.

Future Outlook: The company anticipates a revenue growth of 1%-5% for the fourth quarter, excluding the DH segment, and aims to expand its presence in lower-tier cities in China while focusing on cost reduction and growth opportunities in Europe and the Asia-Pacific region.

Conference Call Announcement: H World Group Limited (HTHT) will hold a conference call on November 26, 2024, at 8:00 PM ET to discuss its Q3 24 earnings results.

Webcast Access Information: The live webcast can be accessed through the company's investor relations website at https://ir.hworld.com/news-and-events/events-calendar.

H World Group Ltd Trading Update: Shares of H World Group Ltd (HTHT) have reached an oversold status with an RSI of 27.9, suggesting potential buying opportunities as heavy selling may be exhausting.

52 Week Performance Overview: HTHT's stock has a 52-week low of $27.03 and a high of $42.98, with the latest trade recorded at $33.27.

Major Earnings Reports: Key companies reporting earnings after the market closes on Tuesday include CrowdStrike Holdings, HP, 3D Systems Corporation, Dell Technologies, and Workday.

Additional Earnings Releases: Other companies expected to release their earnings include ADSK, AMBA, ARWR, GES, HTHT, IREN, JWN, NTNX, PD, URBN, and YY.