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

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Marriott International (MAR) closed the most recent trading day at $158.09, moving +0.31% from the previous trading session. This change lagged the S&P 500's 1.21% gain on the day. Elsewhere, the Dow gained 1.03%, while the tech-heavy Nasdaq added 0.16%.

Heading into today, shares of the hotel company had gained 14.43% over the past month, outpacing the Consumer Discretionary sector's gain of 4.05% and the S&P 500's gain of 3.2% in that time.

Investors will be hoping for strength from Marriott International as it approaches its next earnings release, which is expected to be August 2, 2022. In that report, analysts expect Marriott International to post earnings of $1.59 per share. This would mark year-over-year growth of 101.27%. Meanwhile, our latest consensus estimate is calling for revenue of $4.97 billion, up 57.82% from the prior-year quarter.

MAR's full-year Zacks Consensus Estimates are calling for earnings of $6.09 per share and revenue of $19.55 billion. These results would represent year-over-year changes of +90.91% and +41.06%, respectively.

Investors might also notice recent changes to analyst estimates for Marriott International. 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.

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.

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 1.69% higher. Marriott International is currently a Zacks Rank #2 (Buy).

Digging into valuation, Marriott International currently has a Forward P/E ratio of 25.88. This represents a premium compared to its industry's average Forward P/E of 23.77.

We can also see that MAR currently has a PEG ratio of 0.62. 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. Hotels and Motels stocks are, on average, holding a PEG ratio of 1.13 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 59, which puts it in the top 24% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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