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With a market cap of $67 billion, Marriott International, Inc. (MAR) is a global leader in the operation, franchising, and licensing of hotels, residences, and timeshare properties. With a diverse portfolio of brands catering to various market segments, the Bethesda, Maryland-based company operates luxury, premium, and select-service hotels worldwide.
Companies worth more than $10 billion are generally described as “large-cap” stocks, and Marriott fits this criterion perfectly. Marriott's two primary operating segments, U.S. & Canada and International, encompass thousands of properties across different price points and service levels.
However, the lodging services giant has fallen 20.1% from its 52-week high of $307.52. Marriott shares have declined 15.1% over the past three months, which is more pronounced than the broader Nasdaq Composite's ($NASX) 11.9% decrease during the same period.
Longer term, MAR stock has dropped 11.9% on a YTD basis, a steeper decline compared to the NASX's 8.3% decline over the same period. Moreover, MAR has risen marginally over the past 52 weeks, lagging behind NASX's 10.9% gain.
Despite recent fluctuations, MAR has been trading mostly above its 50-day and 200-day moving averages since mid-September last year.
Despite Marriott reporting better-than-expected Q4 2024 adjusted EPS of $2.45 and revenue of $6.43 billion, its stock fell 5.4% on Feb. 11. Net income dropped significantly by 46.3% year-over-year to $455 million, raising investor worries. Additionally, the company's debt levels surged by 21% to $14.4 billion. Weakness in Greater China, where RevPAR declined by 8% due to economic challenges, further contributed to the bearish sentiment, overshadowing Marriott’s strong international growth.
In contrast, rival Hilton Worldwide Holdings Inc. (HLT) has outperformed MAR. Hilton Worldwide shares have gained 13.7% over the past 52 weeks and a decline of 5.9% on a YTD basis.
Despite MAR's underperformance, analysts remain moderately optimistic about its prospects. Among the 24 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and it is currently trading below the mean price target of $296.40.
On the date of publication, Sohini Mondal 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.
