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Headquartered in Bethesda, Maryland, Marriott International, Inc. (MAR) is a major player in the hospitality industry. With a market cap of $63.73 billion, Marriott is known for its extensive portfolio of hotels and resorts, offering diverse accommodations across luxury, premium, and select-service segments.
Shares of MAR have significantly underperformed the broader market over the past year. The stock has gained 10.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 28.1%. In 2024, the stock is down 1.1%, while the SPX has gained 17.3% on a YTD basis.
Narrowing the focus, MAR's underperformance is evident when measured against the Vanguard Consumer Discretionary Index Fund ETF (VCR). The exchange-traded fund has gained 4% on a YTD basis.
On Jul. 31, MAR reported its Q2 results. The company’s adjusted EPS rose to $2.50 from $2.26 last year, with adjusted net income increasing to $716 million from $690 million. Shares of MAR dropped over 5% after lowering its full-year adjusted EPS forecast to $9.23-$9.40 from the previous estimate of $9.31-$9.65.
For the current fiscal year, ending in December, analysts expect MAR’s EPS to decline 6.1% to $9.38 on a diluted basis. The company's earnings surprise history is mixed. It surpassed the consensus estimate in three of the last four quarters but missed on another occasion.
Among the 22 analysts covering MAR stock, the consensus rating is a “Hold.” That’s based on three “Strong Buy” ratings, one “Moderate Buy,” and 18 “Holds.”
On Jul. 31, Joseph Greff from J.P. Morgan maintained a “Hold” rating on Marriott International, with a price target of $237, implying a potential upside of 6.2% from current levels.
The mean price target of $246.52 represents a 10.5% premium compared to MAR’s current price levels. The Street-high price target of $275 suggests an upside potential of 23.2%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
