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SCOTT LEHTONEN

IBD 50 Stocks To Watch: Hotel Leader Marriott In Buy Zone After Recent Breakout

Tuesday's IBD 50 Stocks To Watch pick, hotel leader Marriott International, is in buy range from its latest buy point in today's stock market rally. MAR shares rallied more 2% than midday Tuesday.

Stocks To Buy And Watch: Marriott

Bethesda, Md.-based Marriott International operates, franchises or licenses more than 7,600 lodging properties across the world. Its brands include Marriott Hotels & Resorts, JW Marriott, Courtyard, Residence Inn and Ritz-Carlton.

On Feb. 15, Marriott reported huge earnings and sales growth. The company earned $1.30 per share on revenue of $4.4 billion, year-over-year increases of 983% and 105%, respectively. The results continued a turnaround for the company, which saw declining EPS or losses in 2020 and Q1 of 2021.

The omicron variant of Covid 19 caused a temporary setback in global demand recovery in January, Chief Executive Anthony Capuano said in the Marriott earnings release. But new bookings have rebounded to pre-Omicron levels. "We are optimistic that the global recovery will progress meaningfully throughout 2022," Capuano said.

Marriott shares jumped 7.5% last Wednesday. Delta Air Lines' earnings that day sparked a rally in travel stocks in another sign of improvement in the sector.

Looking forward, the company's annual earnings are expected to jump 71% in 2022 and another 28% in 2023, according to FactSet.

Marriott will report first-quarter earnings on May 4 before the market opens. Analysts expect earnings of 90 cents a share on sales of $4.169 billion.

Join IBD experts as they analyze leading stocks in the stock market rally on IBD Live!

Marriott's IBD Stock Ratings

MAR shows a middling 79 out of 99 Earnings Per Share Rating and a best-possible SMR grade of A, according to IBD Stock Checkup. The EPS Rating took a hit from declines in earlier quarter. The SMR Rating analyzes a company's sales, margins and return on equity, and offers a letter grade from A (the best) to E (the worst). MAR stock boasts a 98 out of 99 IBD Composite Rating.

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MAR Stock Shows Buy Point

Marriott is at the top of the 5% buy area past a 179.40 buy point in a cup with handle, according to IBD MarketSmith chart analysis. Shares rallied more than 2% midday Tuesday. The 5% buy area tops out at 188.37.

A key strength is the stock's relative strength line, which hit a new high on the April 14 breakout, a bullish indication for the breakout. The RS line measures a stock's price performance vs. the S&P 500 and is an important technical indicator.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the stock market.

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