Is Marriott International Stock Outperforming the Dow?
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With a market cap of $71.7 billion, Marriott International, Inc. (MAR) is a global leader in the operation, franchising, and licensing of lodging properties. The company manages an extensive portfolio of brands across luxury, premium, and select service categories, including names like The Ritz-Carlton, Marriott Hotels, Sheraton, and Moxy.
Companies valued at more than $10 billion are generally considered “large-cap” stocks, and Marriott International fits this criterion perfectly. With operations divided into the U.S. & Canada and International segments, Marriott serves customers worldwide through its hotels, residences, timeshares, and even luxury yachts.
Shares of the Bethesda, Maryland-based company have declined 14.8% from its 52-week high of $307.52. Over the past three months, its shares have fallen 3.4%, underperforming the broader Dow Jones Industrials Average's ($DOWI) 1.6% drop during the same period.
Longer term, MAR stock is down 6.1% on a YTD basis, lagging behind DOWI's marginal drop. However, shares of Marriott International have increased 12.5% over the past 52 weeks, outperforming DOWI’s 9.1% rise over the same time frame.
MAR stock has been trading above its 50-day and 200-day moving averages since May.
Despite Marriott reporting weaker-than-expected Q1 2025 revenue of $6.3 billion, shares rose 1.9% on May 6 due to strong adjusted EPS of $2.32, which beat estimates. Investor confidence was further buoyed by record Q1 room signings exceeding 34,000, nearly two-thirds in international markets and robust RevPAR growth of 5.2% globally, including 10.8% in the Caribbean & Latin America. Additionally, solid forward guidance with Q2 EPS projected at $2.57 - $2.62 and full-year 2025 EPS guidance reaffirmed at $9.82 - $10.19.
However, MAR has underperformed its rival, Hilton Worldwide Holdings Inc. (HLT), which experienced a marginal YTD rise and a 22.8% return over the past 52 weeks.
Despite the stock’s outperformance relative to the Dow Jones over the past year, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 24 analysts in coverage, and as of writing, MAR is trading below the mean price target of $280.96.
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.