Is Marriott International Stock Outperforming the S&P 500?

Valued at a market cap of $81.1 billion, Bethesda, Maryland-based Marriott International, Inc. (MAR) is a global leader in hospitality. The company operates, franchises, and licenses an extensive portfolio of hotels, residences, and timeshare properties across various market segments.

Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Marriott International fits this criterion perfectly, exceeding the mark. Its renowned brands include JW Marriott, The Ritz-Carlton, Sheraton, W Hotels, and Marriott Bonvoy, among many others. With operations spanning U.S., Canada, and international markets, Marriott provides diverse lodging experiences worldwide.

The hotel company pulled back marginally from its 52-week high of $295.45.  Shares of MAR are up 27.2% over the past three months, outperforming the broader S&P 500 Index's ($SPX) 8.5% rise in the same period.

Longer term, on a YTD basis, shares of Marriott International have surged 30.2%, outpacing SPX's 27.3% increase. In addition, MAR has risen 35.3% over the past 52 weeks, lagging behind SPX's 30.8% return.

MAR has been bullish, trading above its 50-day and 200-day moving averages since mid-September.

Marriott International's shares fell 1.6% on Nov. 4 due to its weaker-than-expected Q3 adjusted EPS of $2.26 and revenues of $6.3 billion. The company also lowered its 2024 adjusted EPS guidance to $9.19 - $9.27 and gross fee revenue projections for 2024 were reduced to $5.1 billion - $5.2 billion, slightly below prior expectations of up to $5.18 billion. These disappointments overshadowed positive operational trends like rising RevPAR and portfolio expansion, prompting investor concerns.

Nevertheless, the stock’s rival, Airbnb, Inc. (ABNB), has seen a 1.8% dip over the past 52 weeks and a 1.4% gain on a YTD basis, lagging behind MAR's performances in both periods. 

Despite MAR’s outperformance, analysts are cautiously optimistic about the stock's prospects. The stock has a consensus rating of “Moderate Buy” from the 23 analysts covering it, and it is currently trading above the mean price target of $276.85.