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Looking for a contrarian investing idea in the Hotels industry?
The Contextuall team applied a proprietary algorithm to thousands of headlines, classifying each as Positive, Negative, or Neutral. After agregating and ranking all these signals, an interesting name came up.
Wyndham Worldwide Corporation (WYN) has seen incredibly positive news coverage recently, especially when compared to other companies the industry.
But should you be buying into this optimism, or is this a contrarian signal?
Herd Behavior: The Significance of Extreme Investor Sentiment
It is quite common to see irrational herd behavior among investors, especially if they all move together in stock trading.
Just think about it: if everyone is optimistic and buying, who else is left to keep buying the stock and push it higher?
Or alternatively, if everyone is pessimistic and selling a certain stock, there will come a point when the number of potential buyers far exceed potential sellers.
This is why we built Contextuall’s sentiment technology.
By detecting herd behavior for specific stocks and industries, our users can lower their risk, and perhaps even profit, from the one-sided groupthink of others.Sentiment Stats: Wyndham Worldwide Corporation (WYN) Compared to the Hotels Industry
Based on an analysis of recent Wyndham Worldwide Corporation (WYN) news articles, about 38.78% of headlines have been classified as Positive, higher than the Hotels industry average of 26.59%.
4.08% of headlines have been classified as Negative (vs. an industry average of 10.04%).
So, considering this extreme optimism, relative to industry averages, is most of the good news already priced into the stock?
Let us know what you think–the comment section is towards the right.
Browse Sentiment Stats on Other Companies
The following embedded chart can be used to explore sentiment trends for other major companies, where each dot represents a clickable link to a company page.
Positive sentiment percentages are plotted on the vertical axis, while negative sentiment percentages are plotted on the horizontal axis.
In other words, companies in the top left have more optimistic sentiment than companies in the bottom right.
Click on any of the dots to access more news.
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