Road trip! That's the battle cry for millions of Americans with a bad case of cabin fever due to the pandemic. Travel industry companies from cruise lines to hotels are getting a lift as the number of travelers gradually rises. On Thursday the Relative Strength (RS) Rating for highly rated hotel chain Marriott International moved up into a higher percentile. It got a lift from 70 to 75. Marriott stock was virtually unchanged Thursday.
The new 75 RS Rating means that Marriott stock has outperformed 75% of all stocks in terms of price appreciation over the past year.
Marriott Stock Has History On Its Side
Over 100 years of market history shows that the best stocks typically have an RS Rating north of 80 as they begin their largest runs. See if Bethesda, Md.-based Marriott International can continue to rebound and hit that benchmark.
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Marriott stock is working on a consolidation with a 196 entry. See if it can break out in volume at least 40% above average. On Thursday, Marriott stock was down just 11 cents to 160.13 after the market reversed lower in afternoon trading. Like many stocks, Marriott hit a bottom in late June when its stock dropped to 131.01 and then turned up.
Four Strong Quarters Of Profit, Sales Growth
The company reported 128% earnings growth in its most recent report, to $1.80 per share. The prior three periods its EPS rose 662%, 983% and 1000%-plus. Sales have also been remarkably strong. In its most recent quarter Marriott's revenue surged 70% to $5.34 billion.
Marriott stock earns the No. 2 rank among its peers in the Leisure-Lodging industry group. Small cap specialty rental and catering company Target Hospitality and Chicago-based Hyatt Hotels, which operates or franchises 1,162 Hyatt branded properties, are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
The exclusive Relative Strength Rating from Investor's Business Daily measures price performance with a 1 (worst) to 99 (best) score. The rating shows how a stock's price performance over the trailing 52 weeks compares to all the other stocks in our database.
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