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


Marriott International (MAR) closed the most recent trading day at $81.30, moving -1.49% from the previous trading session. This change lagged the S&P 500′s daily gain of 1.45%. Meanwhile, the Dow gained 1.22%, and the Nasdaq, a tech-heavy index, added 0.78%.

Prior to today’s trading, shares of the hotel company had lost 17.56% over the past month. This has lagged the Consumer Discretionary sector’s loss of 12.47% and the S&P 500′s loss of 7.42% in that time.

Wall Street will be looking for positivity from MAR as it approaches its next earnings report date. On that day, MAR is projected to report earnings of $1.17 per share, which would represent a year-over-year decline of 17.02%. Our most recent consensus estimate is calling for quarterly revenue of $4.66 billion, down 7.12% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.34 per share and revenue of $18.02 billion, which would represent changes of -27.67% and -14.1%, respectively, from the prior year.

Any recent changes to analyst estimates for MAR should also be noted by investors. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 29.38% lower within the past month. MAR currently has a Zacks Rank of #5 (Strong Sell).

Investors should also note MAR’s current valuation metrics, including its Forward P/E ratio of 19.03. For comparison, its industry has an average Forward P/E of 18.07, which means MAR is trading at a premium to the group.

Investors should also note that MAR has a PEG ratio of 3.15 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Hotels and Motels was holding an average PEG ratio of 3.58 at yesterday’s closing price.

The Hotels and Motels industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 207, which puts it in the bottom 19% 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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