Why Marriott Is Poised to Pull Back

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, hotel operator Marriott International has received an alarming one-star ranking.

With that in mind, let's take a closer look at Marriott and see what CAPS investors are saying about the stock right now.

Marriott facts

 

 

Headquarters (founded)

Bethesda, Md. (1971)

Market Cap

$12.8 billion

Industry

Lodging

Trailing-12-Month Revenue

$2.5 billion

Management

Chairman Willard Marriott, Jr.

President/CEO Arne Sorenson

Return on Capital (average, past 3 years)

21.4%

Cash/Debt

$221.0 million/$3.3 billion

Dividend Yield

1.6%

Competitors

 

 


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 30% of the 467 members who have rated Marriott believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, Yacabe, succinctly summed up the Marriott bear case for our community:

The hotel industry is undergoing some interesting times lately. I think the most important thing to remember is the fact that our economy is very volatile as of late. I mean let's think for a second: We've been under sequester for 4 months now, and mass furloughing has become common practice in several government agencies. This means that any industry selling luxuries or extras is going to take a hit. This includes hotels. In a country that's trying to save money, hotels are going to have a very rough time. Expansion and added incentives aren't going to be enough for Marriott.

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The article Why Marriott Is Poised to Pull Back originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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