CHH · NYSE · STOCK
Choice Hotels (CHH) Stock Analysis
$105.72
52W $84.04 – $123.82
56/100
$4.81B
14.8
0.71
Is CHH Bullish or Bearish?
Bullish.
Innellis AI committee rates Choice Hotels (CHH) Buy with a composite score of 56/100
, based on 6 analysts with 50% agreement.
Last updated October 10, 2026.
What Would Change This View
- Upgrade to Strong Buy
- Requires a committee score of 75.0 — +19.45 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Watch
- Requires the score to fall below 55.0 — -0.55 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Macro Analyst sees a compelling case. Portfolio Manager remains cautious — sector concentration is already high (hhi 2796.97). This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- P/E of 14.4 is inexpensive for the broad market — Value
- ROE of 215.1% shows genuine earnings power backing the valuation — Value
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
- MACD histogram positive -- bullish momentum — Technical
Bear Case
- Price-to-book of 24.3x prices in significant intangible value — Value
- Debt-to-equity of 10.52 adds balance-sheet risk to the value case — Value
- High leverage (debt-to-equity 10.52) amplifies downside in a stress scenario — Risk
- Current ratio of 0.87 is tight -- limited short-term liquidity cushion — Risk
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of October 10, 2026
Overall Committee Score
56/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 55%
of 178 Consumer Cyclical peers
Value Analyst
neutral
55
/ 100 · High confidence
Fair value -- neither a bargain nor obviously overpriced
+ P/E of 14.4 is inexpensive for the broad market
− Price-to-book of 24.3x prices in significant intangible value
Growth Analyst
bullish
62
/ 100 · Moderate confidence
Strong, accelerating growth with consistent execution
+ Quarter-over-quarter growth rate is ACCELERATING, not just positive
Technical Analyst
neutral
58
/ 100 · High confidence
Mixed or range-bound price action
+ MACD histogram positive -- bullish momentum
Risk Analyst
bearish
32
/ 100 · Moderate confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− High leverage (debt-to-equity 10.52) amplifies downside in a stress scenario
Macro Analyst
bullish
65
/ 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst
bullish
60
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
Portfolio Manager
bearish
30
/ 100 · Moderate confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− Sector concentration is already high (HHI 2796.97)
Investment Thesis Evolution
Committee score moved marginally from 55.5 to 55.5.
- Bullish support removed: 1 signal(s) disappeared.
- New bullish signals: 1 appeared.
Analyst-level changes:
- Value Analyst: +1 bullish signal(s).
Comparing 2026-10-09 to 2026-10-10 (1 day apart).
Technical Analysis
RSI (14)
68.0
Neutral
MACD Histogram
0.713
Bullish Momentum
Trend Direction
Sideways
Weekly: Downtrend
Market Structure
Lh Ll
Support
$104.27
Resistance
$108.81
Bollinger %B
0.92
Inside Bands
Price vs Moving Averages
EMA 9
$103.36
Above
EMA 21
$102.49
Above
EMA 50
$103.68
Above
EMA 200
$107.00
Below
Fundamental Analysis
Valuation
55
Growth
66
Profitability
91
Financial Health
5
Cash Flow
70
Valuation
P/E Ratio
14.8×
P/B Ratio
33.58×
PEG Ratio
1.71
Dividend Yield
1.09%
52W High
$123.82
52W Low
$84.04
Quality & Growth
ROE
20413.2%
ROA
1267.7%
Gross Margin
4498.7%
Operating Margin
2546.9%
Revenue Growth YoY
—
Debt / Equity
14.82
AI Fundamental Assessment
P/E ratio of 14.8 (inexpensive relative to a 15-40x range); Price-to-book of 33.6x; PEG ratio of 1.7 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 204.1%; Return on assets of 12.7%; Net margin of 20.3%; Gross margin of 45.0%; Current ratio of 0.93 (tight short-term liquidity); Debt-to-equity of 14.82; Free cash flow per share is positive (4.91); Most recent quarter beat estimates by 2.1%; EPS growth accelerating (-33.1% -> +88.8% QoQ); Average YoY EPS growth of 5.2%; Analyst estimates rising over recent quarters
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