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Marriott International (MAR) Gains But Lags Market: What You Should Know

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The latest trading session saw Marriott International (MAR - Free Report) ending at $253.56, denoting a +0.55% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.86%. Elsewhere, the Dow saw an upswing of 1.22%, while the tech-heavy Nasdaq appreciated by 0.51%.

Coming into today, shares of the hotel company had gained 1.26% in the past month. In that same time, the Consumer Discretionary sector gained 1.15%, while the S&P 500 gained 2.84%.

Market participants will be closely following the financial results of Marriott International in its upcoming release. It is anticipated that the company will report an EPS of $2.17, marking a 3.83% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $5.97 billion, indicating a 6.3% growth compared to the corresponding quarter of the prior year.

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 should also take note of any recent adjustments to analyst estimates for Marriott International. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% lower. At present, Marriott International boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, Marriott International is currently exchanging hands at a Forward P/E ratio of 26.62. This represents a premium compared to its industry's average Forward P/E of 25.13.

It's also important to note that MAR currently trades at a PEG ratio of 1.83. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Hotels and Motels industry was having an average PEG ratio of 2.01.

The Hotels and Motels industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 164, placing it within the bottom 35% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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 to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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