Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Marriott International (MAR - Free Report) closed at $163.78, marking a +0.87% move from the previous day. This change lagged the S&P 500's 1.06% gain on the day. Elsewhere, the Dow gained 0.71%, while the tech-heavy Nasdaq added 0.18%.

Prior to today's trading, shares of the hotel company had lost 1.04% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 1.14% and the S&P 500's loss of 1.14% in that time.

Investors will be hoping for strength from Marriott International as it approaches its next earnings release. The company is expected to report EPS of $1.68, up 69.7% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.27 billion, up 33.56% from the year-ago period.

MAR's full-year Zacks Consensus Estimates are calling for earnings of $6.48 per share and revenue of $20.33 billion. These results would represent year-over-year changes of +103.13% and +46.72%, respectively.

Investors should also note any recent changes to analyst estimates for Marriott International. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.1% higher within the past month. Marriott International is currently a Zacks Rank #2 (Buy).

Looking at its valuation, Marriott International is holding a Forward P/E ratio of 25.05. For comparison, its industry has an average Forward P/E of 21.35, which means Marriott International is trading at a premium to the group.

It is also worth noting that MAR currently has a PEG ratio of 0.62. 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. MAR's industry had an average PEG ratio of 0.63 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 61, putting it in the top 25% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


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