What's Happening With MAR
Marriot (MAR) is scheduled to release its third-quarter numbers on November 7. The company will report after the market close, with the consensus calling for earnings of $0.98 per share. During the same period last year the company earned $0.91, and the stock is up 46.6% on the year.
MAR was recently trading at $120.98, just $0.27 below its 12-month high and $52.58 above its 12-month low. Technical indicators for MAR are bullish with a strong upward trend. The stock has recent support above $114.50 and has recent resistance below $121.50. Of the 15 analysts who cover the stock, five rate it a “strong buy”, two rate it a “buy”, and eight rate it a “hold”. MAR gets a score of 71 from InvestorsObserver’s Stock Score Report.
Strength in the overall economy has pushed hotel stocks higher, and MAR has enjoyed strong gains on the year as its last three quarterly reports have been better than expected for both profits and sales. The consensus calls for earnings of $0.98, but the street expects another beat, with a whisper number of $1.01 for the quarter. The valuation is a bit high, with a P/E of 39.8, but with earnings forecast to grow 25.8% this year, and an additional 25.8% next year, the valuation will not put a ceiling on the stock as long as actual results are in-line or better than what analysts have forecast moving forward. With the economy as strong as it is at this time, there is no reason to see weakness start to emerge in MAR.
About Marriott International
Marriott operates 1.35 million rooms across roughly 30 brands. Luxury represents nearly 10% of total rooms, while full service, limited service, and timeshares are 45%, 44%, and 2% of all units, respectively. Marriott, Courtyard, and Sheraton are the largest brands, while Autograph, Tribute, Moxy, Aloft, and Element are newer lifestyle brands. Managed and franchised represent 95% of total rooms. North America composes 67% of total rooms. Managed, franchise, and incentive fees represent the vast majority of revenue and profitability for the company.