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Strength Seen in Marriott (VAC): Can Its 3.4% Jump Turn into More Strength?

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Marriott Vacations Worldwide (VAC - Free Report) shares ended the last trading session 3.4% higher at $117.71. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 18.3% loss over the past four weeks.

Strong occupancies at vacation ownership business coupled with continued demand for leisure travel experiences and relevancy of product offering, have been boosting investors confidence.

This timeshare company is expected to post quarterly earnings of $2.29 per share in its upcoming report, which represents a year-over-year change of +169.4%. Revenues are expected to be $1.15 billion, up 17.2% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Marriott, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on VAC going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Marriott is part of the Zacks Hotels and Motels industry. Civeo (CVEO - Free Report) , another stock in the same industry, closed the last trading session 3.2% lower at $26.63. CVEO has returned 3.7% in the past month.

Civeo's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.52. Compared to the company's year-ago EPS, this represents a change of +26.8%. Civeo currently boasts a Zacks Rank of #1 (Strong Buy).


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