Marriott International Stock: 9 Straight Green Days, Up 11%

MARYTD+28.8%SPYYTD+13.4%XLYYTD-2.9%
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Marriott International (MAR) stock has risen for 9 consecutive trading days, gaining 11.4% over that stretch. That added about $10.8 billion to the company’s market value, which now stands at about $104.9 billion. The stock closed at $397.31 on Tuesday, October 20, 1.1% below its 52-week high of $401.72 and 54.1% above its low of $257.85.

Image from Pixabay

 
The Streak Next To The S&P 500

Returns for MAR and the S&P 500 over the streak and the periods around it, all ending Tuesday, October 20 and including dividends:
 

Return Period MAR S&P 500
1 Day 1.7% 0.3%
9 Days (Current Streak) 11.4% -1.1%
1 Month (21 Trading Days) 15.9% -0.6%
3 Months (63 Trading Days) 7.7% 3.1%
Year To Date 28.8% 13.7%
1 Year (252 Trading Days) 53.6% 17.1%

How The Streak Compares With The Market

The market explains little of this: the S&P 500 lost 1.1% over the same 9 sessions, including dividends, against Marriott International’s +11.4%. 3 other S&P 500 stocks are currently on winning streaks of 9 days or longer. Over the past three months the stock is up 7.7%, a window that includes the streak; over the other 54 sessions of that window it was down 3.4%.

What The Numbers Say About The Rally

On the fundamentals, revenue grew 4.7% over the last twelve months, against a median of 7.3% for S&P 500 Consumer Discretionary stocks; its operating margin is 15.7%, versus a median of 15.4%; and the stock trades at 40.5 times trailing earnings against a median of 19.7. The numbers make the run harder to justify: revenue growth below the median and a multiple well above the median. At this price, the stock is asking a lot of the business.

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Momentum Is A Tailwind, Not A Plan

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