Should You Sell Your Position in Marriott International (MAR)?
Wednesday, Dec 11, 2024 9:40 am ET
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As an investor, you might be wondering whether to hold onto or sell your position in Marriott International (MAR). With the recent Q3 earnings report and analyst opinions, it's essential to consider the company's prospects and the broader market trends. This article will help you make an informed decision by examining Marriott's earnings performance, analyst ratings, and the author's investment preferences.
Marriott International's Q3 earnings report, released on November 6, 2024, showed a mixed performance. The company missed revenue estimates but reported strong contributions from Base management and Franchise fees. Despite the bearish performance in the China market and missing earnings and revenue estimates, MAR's stock experienced a bullish movement, with shares up 7.7%. Analysts boosted their forecasts, indicating potential future growth prospects.
Analysts' ratings and price targets have played a significant role in influencing MAR's stock price. According to Yahoo Finance, the average rating for MAR stock is "hold" with 25 analyst opinions. However, the number of analysts with a "buy" or "strong buy" rating has increased, indicating a more positive outlook on the company's future performance. This shift in analyst sentiment may have contributed to the recent bullish movement in MAR's stock price, despite reporting worse-than-expected Q3 earnings and lowering its full-year guidance.

The average 12-month price target for MAR stock is $263.05, which is a decrease of -8.56% from the latest price. This suggests that analysts expect the stock to decline in the near term, but the recent price action indicates that investors may be optimistic about the company's long-term prospects.
The author's core investment values emphasize stability, predictability, and consistent growth. They favor 'boring but lucrative' investments, valuing companies like Morgan Stanley that offer steady performance without surprises, which they believe deserve higher valuations. The author prefers a balanced portfolio, combining growth and value stocks, and advises against selling strong, enduring companies like Amazon and Apple during market downturns.
In conclusion, Marriott International's Q3 earnings report and analyst opinions suggest that investors should hold onto their positions in the company. Despite missing revenue estimates, the strong contributions from Base management and Franchise fees, along with analysts' positive outlook, overshadow the bearish performance in the China market. The company's fundamentals and future growth prospects remain strong, making it an attractive investment opportunity for those seeking stable and predictable returns.