Here's Why Marriott Vacations Worldwide (VAC) is a Strong Value Stock

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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

Marriott Vacations Worldwide (VAC)

Marriott Vacations Worldwide Corporation, a leading global vacation company, offers vacation ownership, exchange, rental, resort and property management services. As of 2021-end, the company had more than 120 resorts and 700,000 owners and members in a diverse portfolio of seven vacation ownership brands. It also has exchange networks and membership programs in more than 3,200 resorts in 90 countries.

VAC is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of B. Shares are currently trading at a forward P/E of 11.6X for the current fiscal year compared to the Hotels and Motels industry's P/E of 20.5X. Additionally, VAC has a PEG Ratio of 2 and a Price/Cash Flow ratio of 8X. Value investors should also note VAC's Price/Sales ratio of 1X.

A company's earnings performance is important for value investors as well. For fiscal 2023, two analysts revised their earnings estimate higher in the last 60 days for VAC, while the Zacks Consensus Estimate has increased $0.03 to $11.04 per share. VAC also holds an average earnings surprise of 18.7%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding VAC to their portfolios.

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