Marriott International, Inc. (MAR) has recently garnered a bullish outlook from Ari Klein of BMO Capital, receiving an ‘Outperform’ rating with a price target of $370, an increase from the current trading price of $324.91. This upgrade suggests a significant upside potential for investors, signaling renewed confidence in the company’s growth trajectory amidst a dynamic hospitality market.
Recent Price Action
In the past week, Marriott’s stock price has shown modest upward movement, reflecting a change of approximately 2.80% to close at $324.91. This price point is well within a 52-week range that has seen a low of $58.18 and a high of $372.72, illustrating the stock’s substantial volatility. With a market capitalization of approximately $87.94 billion and a beta of 1.157, Marriott’s stock tends to react with slightly greater volatility than the broader market. The recent trading volume of nearly 480,000 shares contrasts with its average volume of over 1.5 million, indicating some fluctuations in trading interest among investors.
Historical Performance
Evaluating Marriott’s stock performance over the last year offers further insights into its resilience. Over the past 30 days, MAR has gained approximately 11.05%, while its quarterly performance reflects a robust gain of 21.48%. Year-to-date, the stock has appreciated by 18.39%. Notably, the weekly volatility sits at 2.37%, and monthly volatility at 1.94%, suggesting relatively stable trading patterns in the near term. These figures indicate that despite broader market fluctuations, Marriott has managed to maintain a positive trajectory, appealing to investors seeking growth in the hospitality sector.
Earnings Analysis
Marriott’s recent earnings report presents a favorable comparison against analysts’ expectations. For the latest quarter, Marriott reported an EPS of $2.47, exceeding the estimated $2.38, resulting in a surprise factor of approximately 3.78%. This follows a prior quarter where EPS also beat expectations, with actual earnings of $2.65 against an estimate of $2.61. The consistent outperformance in EPS not only reflects the company’s operational effectiveness but also enhances overall investor confidence in its earnings predictability and quality.
Analyst / Consensus View
The consensus among analysts looking at Marriott is notably positive. According to data from BMO Capital, the recent upgrade to ‘Outperform’ aligns with a broader sentiment reflected in the 90-day consensus rating comprising five ‘Buy’ and five ‘Hold’ ratings, with no ‘Sell’ recommendations. The average price target stands at $311.20, with a high target of $370 and a low of $274. The analysts’ varied opinions suggest a growing conviction in the stock’s potential, especially as recovery trends in travel and hospitality continue to gain momentum.
Stock Grading or Fundamental View
Marriott’s Stocks Telegraph Grade is currently set at 52, indicating solid fundamentals are at play, supported by a favorable investment profile derived from comprehensive financial and market analysis. This grade suggests that while there are strong indicators for growth and management efficiency, investors should remain cognizant of market conditions that could influence performance.
Conclusion
For investors considering Marriott International, Inc. (MAR), this stock appears to be an appealing option for those looking at long-term growth prospects within the hospitality sector. The recent upgrade to ‘Outperform,’ combined with positive earnings surprises, positions Marriott favorably amid a recovering travel landscape. However, potential investors should also remain cautious about market volatility and economic shifts that could affect consumer demand for travel and accommodation. With its current pricing trajectory and analysts indicating a strong upside, MAR is certainly a stock to watch closely for investors interested in capitalizing on growth opportunities.