Marriott International has a new 3-year business strategy, which includes adding 300,000 new rooms and returning and as much as $11 billion to shareholders by 2021.
The luxury hotel chain plans to open 1,700 hotels by 2021, with more than 500 hotels (on average) per annum. Marriott hopes that revenue per room would grow at a compounded average rate of between 1% and 3%. The company expects the business expansion to enable it to pay shareholders as much as $9 billion on stock buybacks and nearly $2 billion in dividends over the three years.
It expects its annual diluted earnings to be in the range of $7.65 to $8.50 per share by 2021, which is higher compared to analysts’ average estimate of $7.72 per share (based on Refinitiv data).
Earlier this month, Marriott’s fourth quarter earnings of $1.44 per share surpassed analysts' estimates, but fell short of revenue estimates.
In September, the hotel chain’s Starwood guest reservation data base was hit by a major data breach, which compromised personal data (like name, emailing address, phone numbers and passport numbers) of around 327 million guests.
MAR moved below its 50-day moving average on April 15, 2024 date and that indicates a change from an upward trend to a downward trend. In of 46 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on April 12, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on MAR as a result. In of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for MAR turned negative on April 12, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
The 10-day moving average for MAR crossed bearishly below the 50-day moving average on April 19, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MAR declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where MAR's RSI Indicator exited the oversold zone, of 23 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MAR advanced for three days, in of 352 cases, the price rose further within the following month. The odds of a continued upward trend are .
MAR may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 301 cases where MAR Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. MAR’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: MAR's P/B Ratio (443.634) is very high in comparison to the industry average of (29.232). P/E Ratio (24.689) is within average values for comparable stocks, (33.196). MAR's Projected Growth (PEG Ratio) (2.536) is very high in comparison to the industry average of (1.378). Dividend Yield (0.008) settles around the average of (0.023) among similar stocks. P/S Ratio (3.210) is also within normal values, averaging (7.565).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
an operator of hotels and related lodging facilities
Industry HotelsResortsCruiselines