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

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Marriott International (MAR - Free Report) closed the most recent trading day at $199.86, moving +0.66% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.94%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, lost 1.53%.

Coming into today, shares of the hotel company had lost 2.65% in the past month. In that same time, the Consumer Discretionary sector lost 2.09%, while the S&P 500 gained 1.85%.

Wall Street will be looking for positivity from Marriott International as it approaches its next earnings report date. The company is expected to report EPS of $2.09, up 23.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.9 billion, up 11.12% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.64 per share and revenue of $23.93 billion. These totals would mark changes of +29.15% and +15.2%, respectively, from last year.

Any recent changes to analyst estimates for Marriott International should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% higher. Marriott International is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Marriott International's current valuation metrics, including its Forward P/E ratio of 22.97. This represents a premium compared to its industry's average Forward P/E of 20.96.

Investors should also note that MAR has a PEG ratio of 1.35 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Hotels and Motels industry currently had an average PEG ratio of 1.56 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 177, putting it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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