Q2 STOCKS TO BUY

Why Marriott Stock Could Continue Its Solid Run

Marriott International shares are outperforming on the charts, but shorts haven't bought into the uptrend

May 23, 2017 at 10:52 AM
facebook X logo linkedin


Shares of hotel operator Marriott International (NASDAQ: MAR) have put in an impressive performance in 2017, up more than 24%. These strong technicals were in full view earlier this month, when the stock gapped higher post-earnings -- barreling through the century mark, or two times its 2007 peak, and eventually notching a new record high.

170519mar2

 

There's still plenty of skepticism levied toward MAR, which could serve as a boon for the shares as it starts to unwind. Short interest, for instance, has surged 45% since mid-February, even as the stock has added 15%. Not only does MAR's ability to rally in the face of such intense selling pressure speak volumes to its underlying strength, but it would take almost a week to cover these bearish bets, at the stock's average pace of trading. This leaves ample sideline cash available to help fuel MAR's fire.

There's also plenty of room for analysts to upwardly revise their ratings. Of the 17 brokerages covering MAR, 10 still maintain a lackluster "hold" recommendation. A round of upgrades could draw more buyers to the table.

It's also an affordable time to purchase premium on MAR options. While its Schaeffer's Volatility Scorecard (SVS) reading of 81 indicates the stock has tended to make outsized moves relative to what the options market has priced in, its Schaeffer's Volatility Index (SVI) of 19% ranks in the 16th annual percentile -- meaning low volatility expectations are currently being priced in to MAR's options.

Subscribers to Schaeffer's Weekend Trader Series options recommendation service received this MAR commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.
 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter