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

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Marriott International (MAR - Free Report) closed at $80.71 in the latest trading session, marking a -0.48% move from the prior day. This change lagged the S&P 500's daily gain of 1.39%. Elsewhere, the Dow gained 1.11%, while the tech-heavy Nasdaq added 1.65%.

Coming into today, shares of the hotel company had lost 2.07% in the past month. In that same time, the Consumer Discretionary sector gained 19.15%, while the S&P 500 gained 25.31%.

Wall Street will be looking for positivity from MAR as it approaches its next earnings report date. The company is expected to report EPS of $1, down 29.08% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.25 billion, down 15.2% from the prior-year quarter.

MAR's full-year Zacks Consensus Estimates are calling for earnings of $3.16 per share and revenue of $15.03 billion. These results would represent year-over-year changes of -47.33% and -28.33%, respectively.

Any recent changes to analyst estimates for MAR should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the past month, the Zacks Consensus EPS estimate has moved 37.92% lower. MAR is currently sporting a Zacks Rank of #5 (Strong Sell).

Digging into valuation, MAR currently has a Forward P/E ratio of 25.65. Its industry sports an average Forward P/E of 23.9, so we one might conclude that MAR is trading at a premium comparatively.

Also, we should mention that MAR has a PEG ratio of 4.24. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Hotels and Motels stocks are, on average, holding a PEG ratio of 4.24 based on yesterday's closing prices.

The Hotels and Motels industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 232, which puts it in the bottom 10% of all 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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