2021 was a blowout year for Marriott International, with earnings growth the last three quarters of that year ranging from 239% to 983%. Some of that has spilled over into 2022. On Monday the Relative Strength (RS) Rating for Marriott stock climbed to 73, up from 70 a day earlier, a welcome improvement.
Market research shows that top stocks often have an RS Rating above 80 in the early stages of their moves. Marriott stock is several points below that benchmark. Still, Marriott stock earns the No. 1 rank among its peers in the Leisure-Lodging industry group, making it one to watch. The company operates nearly 8,000 hotels and residences worldwide.
In its latest quarterly report, Bethesda, Md.-based Marriott recorded a 71% year-over-year surge in earnings per share to $1.69, on a 35% jump in revenue to $5.31 billion.
Last April the hotel giant's stock hit an all-time high 195.90. It dropped to 131.01 in June amid this year's bear market. However, it's rebounded and closed at 158.89 Monday, down 2.2% for the day. It was unchanged in after-hours trading, according to the Wall Street Journal.
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Marriott International is working on a consolidation with a 196 buy point. See if it can clear the breakout price in heavy trade.
Among its other key ratings, Marriott stock has an 84 Composite Rating of 99. Its 77 Earnings Per Share Rating, a comparison of recent quarterly and yearly earnings growth vs. all other stocks, is good but not great. Largely that's because of losses it incurred a couple of years ago when hotels took a hit in the early days of Covid. However, it boasts an A SMR Rating (sales growth+profit margins+return on equity) on an A-to-E scale with A superb and E dismal.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary Relative Strength Rating identifies share price movement with a 1 (worst) to 99 (best) score. The rating shows how a stock's price movement over the trailing 52 weeks compares to all the other stocks in our database.
