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Marriott (MAR) Up 20% in the Past Year: Will the Rally Sustain?
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Shares of Marriott International, Inc. (MAR - Free Report) have surged 20.3% in the past year, compared with the industry’s growth of 2.8%. The company is benefiting from improving demand, expansion efforts and a robust loyalty program.
In the past 30 days, earnings estimates for 2022 and 2023 have been revised upward by 7 cents and 5 cents to $5.97 and $7.31 per share, respectively. Revenues for 2022 and 2023 are likely to improve 42.9% and 12% year over year, respectively. Let’s delve deeper and analyze the factors driving the Zacks Rank #1 (Strong Buy) company’s performance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Driving Growth
The company witnessed a steady increase in demand throughout first-quarter 2022. During first-quarter 2022, it saw solid demand in the United States, Canada, the Middle East and Africa region. Marriott has been benefiting from robust leisure demand and business and cross-border travel improvements. Although the Omicron variant impacted bookings (during January 2022), demand is likely to have rebounded. In March, worldwide RevPAR was only 9% below the 2019 level. Occupancy surged to 64%, with ADR an impressive 5% above the March 2019 level.
The company has been gaining from the reopening of the international borders and leniency in travel restrictions. The company noted that cross-border guests accounted for 14% of global room nights, up 100 basis points sequentially but still below the 2019 level of 19%. With global trends improving, the company expects the recovery momentum to continue in the upcoming periods. Group demand in the United States and Canada increased sharply during the quarter.
Marriott has been consistently trying to expand its presence worldwide and capitalize on the demand for hotels in international markets. Moving ahead, the company plans to significantly broaden its global portfolio of luxury and lifestyle brands. At the end of first-quarter 2022, Marriott's development pipeline totaled nearly 2,878 hotels, with approximately 489,000 rooms. Nearly 201,400 rooms were under construction. During the quarter, the company added 75 new properties (11,799 rooms) to its worldwide lodging portfolio. In 2022, Marriott anticipates net rooms growth to be 3.5-4%. The hotel company has been trying to strengthen its presence outside the United States, especially in Asia, Latin America, the Middle East and Africa. Meanwhile, the company’s European pipeline has grown consistently in the recent past and is expected to continue in the days ahead.
With nearly 160 million members globally, the company’s loyalty program Marriott Bonvoy plays a supporting hand in its marketing strategies. The company is engaging its customers with promotional offers such as grocery and retail spending accelerators on its co-branded credit cards (American Express and Chase). During the first quarter of 2021, the company expanded its co-brand portfolio in South Korea and Mexico, bringing the total count to seven. Backed by solid customer acceptance for credit card programs and a rise in credit card average spend, the company anticipates higher contributions from credit card fees in 2022.
Civeo sports a Zacks Rank #1 at present. The company has a trailing four-quarter earnings surprise of 1,565.1%, on average. Shares of the company have soared 77.7% in the past year.
The Zacks Consensus Estimate for CVEO’s 2022 sales and earnings per share (EPS) suggests growth of 12.5% and 1,450%, respectively, from the year-ago period’s levels.
Bluegreen Vacations flaunts a Zacks Rank #2 (Buy). BVH has a trailing four-quarter earnings surprise of 85.9%, on average. The stock has surged 46.6% in the past year.
The Zacks Consensus Estimate for BVH’s current financial year sales and EPS indicates growth of 11.2% and 35.1%, respectively, from the year-ago period’s reported levels.
Funko carries a Zacks Rank #2. FNKO has a trailing four-quarter earnings surprise of 78.7%, on average. Shares of the company have declined 6% in the past year.
The Zacks Consensus Estimate for Funko’s current financial year sales and EPS suggests growth of 26.8% and 31%, respectively, from the year-ago period’s reported levels.
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Marriott (MAR) Up 20% in the Past Year: Will the Rally Sustain?
Shares of Marriott International, Inc. (MAR - Free Report) have surged 20.3% in the past year, compared with the industry’s growth of 2.8%. The company is benefiting from improving demand, expansion efforts and a robust loyalty program.
In the past 30 days, earnings estimates for 2022 and 2023 have been revised upward by 7 cents and 5 cents to $5.97 and $7.31 per share, respectively. Revenues for 2022 and 2023 are likely to improve 42.9% and 12% year over year, respectively. Let’s delve deeper and analyze the factors driving the Zacks Rank #1 (Strong Buy) company’s performance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Driving Growth
The company witnessed a steady increase in demand throughout first-quarter 2022. During first-quarter 2022, it saw solid demand in the United States, Canada, the Middle East and Africa region. Marriott has been benefiting from robust leisure demand and business and cross-border travel improvements. Although the Omicron variant impacted bookings (during January 2022), demand is likely to have rebounded. In March, worldwide RevPAR was only 9% below the 2019 level. Occupancy surged to 64%, with ADR an impressive 5% above the March 2019 level.
The company has been gaining from the reopening of the international borders and leniency in travel restrictions. The company noted that cross-border guests accounted for 14% of global room nights, up 100 basis points sequentially but still below the 2019 level of 19%. With global trends improving, the company expects the recovery momentum to continue in the upcoming periods. Group demand in the United States and Canada increased sharply during the quarter.
Marriott has been consistently trying to expand its presence worldwide and capitalize on the demand for hotels in international markets. Moving ahead, the company plans to significantly broaden its global portfolio of luxury and lifestyle brands. At the end of first-quarter 2022, Marriott's development pipeline totaled nearly 2,878 hotels, with approximately 489,000 rooms. Nearly 201,400 rooms were under construction. During the quarter, the company added 75 new properties (11,799 rooms) to its worldwide lodging portfolio. In 2022, Marriott anticipates net rooms growth to be 3.5-4%. The hotel company has been trying to strengthen its presence outside the United States, especially in Asia, Latin America, the Middle East and Africa. Meanwhile, the company’s European pipeline has grown consistently in the recent past and is expected to continue in the days ahead.
With nearly 160 million members globally, the company’s loyalty program Marriott Bonvoy plays a supporting hand in its marketing strategies. The company is engaging its customers with promotional offers such as grocery and retail spending accelerators on its co-branded credit cards (American Express and Chase). During the first quarter of 2021, the company expanded its co-brand portfolio in South Korea and Mexico, bringing the total count to seven. Backed by solid customer acceptance for credit card programs and a rise in credit card average spend, the company anticipates higher contributions from credit card fees in 2022.
Image Source: Zacks Investment Research
Other Key Picks
Some other top-ranked stocks in the Consumer Discretionary sector are Civeo Corporation (CVEO - Free Report) , Bluegreen Vacations Holding Corporation and Funko, Inc. (FNKO - Free Report) .
Civeo sports a Zacks Rank #1 at present. The company has a trailing four-quarter earnings surprise of 1,565.1%, on average. Shares of the company have soared 77.7% in the past year.
The Zacks Consensus Estimate for CVEO’s 2022 sales and earnings per share (EPS) suggests growth of 12.5% and 1,450%, respectively, from the year-ago period’s levels.
Bluegreen Vacations flaunts a Zacks Rank #2 (Buy). BVH has a trailing four-quarter earnings surprise of 85.9%, on average. The stock has surged 46.6% in the past year.
The Zacks Consensus Estimate for BVH’s current financial year sales and EPS indicates growth of 11.2% and 35.1%, respectively, from the year-ago period’s reported levels.
Funko carries a Zacks Rank #2. FNKO has a trailing four-quarter earnings surprise of 78.7%, on average. Shares of the company have declined 6% in the past year.
The Zacks Consensus Estimate for Funko’s current financial year sales and EPS suggests growth of 26.8% and 31%, respectively, from the year-ago period’s reported levels.