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Marriott International (MAR) Gains As Market Dips: What You Should Know

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The most recent trading session ended with Marriott International (MAR - Free Report) standing at $251.41, reflecting a +0.29% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.19% loss on the day. Meanwhile, the Dow experienced a rise of 0.1%, and the technology-dominated Nasdaq saw a decrease of 0.54%.

The hotel company's stock has climbed by 6.7% in the past month, exceeding the Consumer Discretionary sector's gain of 0.15% and the S&P 500's gain of 3.18%.

Analysts and investors alike will be keeping a close eye on the performance of Marriott International in its upcoming earnings disclosure. In that report, analysts expect Marriott International to post earnings of $2.17 per share. This would mark year-over-year growth of 3.83%. Meanwhile, our latest consensus estimate is calling for revenue of $5.97 billion, up 6.3% from the prior-year quarter.

MAR's full-year Zacks Consensus Estimates are calling for earnings of $9.47 per share and revenue of $25.44 billion. These results would represent year-over-year changes of -5.21% and +7.29%, respectively.

Investors might also notice recent changes to analyst estimates for Marriott International. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 3.19% lower within the past month. As of now, Marriott International holds a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Marriott International has a Forward P/E ratio of 26.46 right now. Its industry sports an average Forward P/E of 26.06, so one might conclude that Marriott International is trading at a premium comparatively.

Also, we should mention that MAR has a PEG ratio of 1.82. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Hotels and Motels industry was having an average PEG ratio of 1.82.

The Hotels and Motels industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 77, finds itself in the top 31% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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