Bethesda, Maryland-based Marriott International, Inc. (MAR) is a hospitality company that operates, franchises, and licenses a broad portfolio of hotel, lodging, and timeshare properties in the luxury, premium, select service, and extended stay segments. It has a market value of $90.6 billion.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and MAR fits the label perfectly, with a market cap in excess of that threshold, indicating its size, influence, and dominance in the housing industry. The company primarily follows an asset-light business model, generating revenue through management and franchise fees rather than owning multiple properties, which supports strong cash generation and global expansion in more than 130 countries and territories.
The lodging giant is currently trading 7.6% below its 52-week high of $370, dated February 12. MAR shares have gained 12.2% over the past three months, outperforming the S&P 500 Index ($SPX) by nearly 1% over the same time frame.
Additionally, on a YTD basis, MAR shares are up 10.2%, compared to a slight increase in the SPX. In the longer term, the MAR has gained 23.3% over the past 52 weeks, ahead of the SPX’s 17.4% gain over the same time frame.
Confirming its bullish trend, MAR has been trading above its 200-day and 50-day moving averages since early November.
On February 10, MAR shares rose 8.5% after delivering mixed Q4 results. While the company’s adjusted EPS of $2.58 increased 5.3% year-over-year, it missed analyst expectations of $2.64. However, its revenue rose 4.1% to $6.7 billion from the year-ago quarter and slightly topped consensus estimates. The rally was further supported by the company’s optimistic forecast for next year and strong operating momentum, with its adjusted EBITDA of $1.4 billion up 9% from the same period last year.
MAR has outperformed its rival, Hilton Worldwide Holdings Inc. ( HLT ), which has gained 20.3% over the past 52 weeks and 8.5% on a YTD basis.
Given MAR’s recent good performance, analysts are moderately optimistic about its prospects. The stock has a consensus rating of “moderate buy” from the 26 analysts that cover it, and an average price target of $348.64 suggests a 2% premium to its current price level.
As of the date of publication, Niharika Jain held no positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. This article was originally published on Barchart.com
