Back to top

Image: Bigstock

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

Read MoreHide Full Article

Marriott International (MAR - Free Report) closed the most recent trading day at $92.26, moving +0.9% from the previous trading session. This change lagged the S&P 500's 1.31% gain on the day. Meanwhile, the Dow gained 1.9%, and the Nasdaq, a tech-heavy index, added 1.01%.

Investors will be hoping for strength from MAR as it approaches its next earnings release. In that report, analysts expect MAR to post earnings of -$0.44 per share. This would mark a year-over-year decline of 128.21%. Our most recent consensus estimate is calling for quarterly revenue of $1.60 billion, down 69.79% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.89 per share and revenue of $13.14 billion, which would represent changes of -85.17% and -37.34%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for MAR. These recent revisions tend to reflect the evolving nature of short-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. 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.

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 30.21% lower. MAR currently has a Zacks Rank of #3 (Hold).

Digging into valuation, MAR currently has a Forward P/E ratio of 103.26. Its industry sports an average Forward P/E of 58.35, so we one might conclude that MAR is trading at a premium comparatively.

Investors should also note that MAR has a PEG ratio of 17.07 right now. 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. The Hotels and Motels industry currently had an average PEG ratio of 8.14 as of yesterday's close.

The Hotels and Motels industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 29% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Marriott International, Inc. (MAR) - free report >>

Published in