Travel and lodging stocks are perking up. Among them, hotel giant Marriott International (MAR) saw its Relative Strength (RS) Rating climb to a new level Thursday, as it got a lift to 71, up from 67. With a third Covid-19 vaccine, a one-shot dose from Johnson & Johnson (JNJ) getting high marks and the numbers of people getting covid dropping, a return to a semblance of normal is on the horizon.
The 71 RS Rating means that Marriott is outperforming 71% of all stocks. That and other indicators point to rising strength for the Bethesda, Md.-based hotelier. But it still has work to do to be among the most hospitable stocks. Top-performing stocks typically have an RS Rating of at least 80 as they launch their largest climbs. See if Marriott International can continue to show renewed price strength and clear that threshold.
In its most recent quarter, earnings fell 92% from the same quarter a year earlier, to 12 cents per share. Sales slid 60% to $2.17 billion.
Big Investors Buying Marriott
An indicator of brighter days ahead is its bullish A- Accumulation/Distribution Rating. The A- A/D rating, on an A+ to E scale, shows strong buying of its shares by institutional investors. Reflecting that buying, its stock has risen about 30% in just the past month, from a low of 115.50 on Jan. 29 to about 150 Thursday afternoon.
Other indicators are still trailing. Marriott’s Composite Rating is just 37, of 99. And its EPS Rating is a dismal 8, after four quarters of declining profits, year over year.
Marriott International holds the No. 3 rank among its peers in the Leisure-Lodging industry group. Hilton Worldwide (HLT) and Extended Stay of America (STAY) are also among the group’s highest-rated stocks.
Marriott International has moved more than 5% past a 135.94 entry in a second-stage flat base, meaning it’s now out of a proper buy zone. Look for the stock to offer a new chance to pick up shares like a three-weeks tight or pullback to the 50-day or 10-week moving average.
As you try to find the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD’s unique RS Rating measures technical performance by showing how a stock’s price movement over the last 52 weeks compares to that of the other stocks in our database.
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