Travel Stock to Avoid Ahead of the Summer Months

The stock is enjoying a slight post-earnings boost today

Deputy Editor
May 4, 2022 at 12:36 PM
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The shares of Marriot International Inc (NASDAQ:MAR) are getting a small boost on a well-received first-quarter earnings and revenue beat. The stock was last seen up 1.2% at $175.21, and boasts a year-to-date lead of 6%. Investors might want to look before they leap however, as May tends to be a bearish month for the hotel concern.

In fact, MAR just showed up on Schaeffer's Senior Quantitative Analyst Rocky White's list of the worst performing S&P 500 stocks in May, going back 10 years. According to this data, Marriot stock has only managed two positive monthly returns during this time span, and averaged a 2.5% drop. A similar move would put MAR back toward the $170 level, which is where the equity landed during yesterday's pre-earnings pullback. 

Short-term options traders have been much more bullish than usual, and an unwinding of sentiment could put additional pressure on MAR. The security's Schaeffer's put/call volume ratio of 0.52 sits higher than just 6% of readings from the past year. In other words, there's been an incredible call-bias among these players. 

Analysts have been silent on Marriot stock, but most members of the brokerage bunch were already bullish, and a lack of post-earnings bull notes is telling. Of the 11 in  coverage, eight say "hold," compared to three "strong buy" ratings. Plus, the 12-month consensus price target of $178.05 is a slim 1.4% premium to current levels. 

 

 




 
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