Marriott International (MAR) Shares Soar 4.58% on Strong Earnings

Marriott International (MAR) shares surged 4.58% intraday, reaching their highest level since March 2025, driven by a combination of strong earnings and strategic adjustments.

The strategy of buying MAR shares after they reach a recent high and holding for one week resulted in poor performance over the past five years. The strategy's return was -2.86%, significantly underperforming the benchmark return of 31.00%. The excess return was -33.86%, and the CAGR was -1.32%, indicating significant negative returns. The strategy also had a Sharpe ratio of -0.53, a maximum drawdown of -4.21%, and a volatility of 2.47%, highlighting its high risk and negative returns.

Marriott International reported robust earnings for the first quarter of 2025, with increased revenue and net income. The company's RevPAR (Revenue per Available Room) increased by 4.1% worldwide, with notable growth in both the U.S. & Canada and international markets. This performance was bolstered by a net rooms growth of 6.8% for the full year 2024, reflecting the company's successful expansion and operational efficiency.

Evercore ISI adjusted its price target for Marriott to $320 from $330, maintaining an Outperform rating. This adjustment was influenced by a downgraded RevPAR forecast for fiscal year 2025, primarily due to weaker demand in the U.S. However, international RevPAR remained robust, indicating a mixed outlook for the company's performance.

Marriott also revised its full-year worldwide RevPAR growth forecast to 1.5% to 3.5% from the prior 2% to 4%. This revision highlights a reduction in expectations, potentially reflecting market uncertainties and economic factors. Despite this, the company's strong first-quarter performance and strategic adjustments have contributed to a positive investor sentiment, driving the stock price higher.