Marriott International Ready to Breakdown?

NASDAQ: MAR | Marriott International Inc. News, Ratings, and Charts

MAR – A descending triangle pattern has formed in the chart of Marriott International (MAR). This is a bearish pattern. If the support level is broken, a breakdown could soon occur. Read more to learn how to take advantage of this trade.

A descending triangle pattern has emerged in the chart of Marriott International Inc. (MAR). This is a bearish pattern and if the support level is broken, a breakdown could occur.

MAR is a leading worldwide hospitality company focused on lodging management and franchising. The company operates over 1.4 million rooms in 7,600 properties across roughly 30 brands. Its largest brands include Marriott, Courtyard, and Sheraton.

The company has struggled on account of the pandemic and has suspended its share repurchase program and dividend payments for the time being. However, MAR is seeing improvement in occupancy and bookings in China. As the economy opens up, the company should benefit from its focus on expansion initiatives and its loyalty program.

MAR had $2.8 billion in cash as of the end of the year compared with $1.2 billion in short-term obligations. Both earnings and sales were down in the most recent quarter. Earnings fell 92% year over year, while revenue dropped 59.6%.

Even with a drop in growth, the stock appears overvalued with a trailing P/E of 219.45 and a forward P/E of 59.88. The stock showed bullish momentum in the first couple months of the year, but performance has since been mixed.

Take a look at the 1-year chart of MAR below with my added notations:

  Chart of MAR provided by TradingView

MAR has formed key support at $140 (green) over the past couple of months. In addition, the stock is also declining against a down trending resistance line (red). These two lines have MAR stuck within a common pattern known as a descending triangle. Eventually, the stock will break out of it.

A short trade could be made on a break below the $140 support level.

Want to Discover More Great Trades?

I have explored virtually every flavor of technical analysis and chart pattern known to mankind. The sad fact is that the vast majority of them don’t work at all.

That is why I recently put together this special report to help investors focus on the only 5 chart patterns that matter…the ones that lead to the most timely and profitable stock trades. Click below to get your copy now!

5 WINNING Stock Chart Patterns

Have a good trading day!

Good luck!

Christian Tharp, CMT

@cmtstockcoach


MAR shares fell $0.26 (-0.18%) in premarket trading Thursday. Year-to-date, MAR has gained 10.31%, versus a 11.62% rise in the benchmark S&P 500 index during the same period.


About the Author: Christian Tharp


I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group and Yolo Publishing. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
MARGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Updated 2024 Stock Market Outlook

The bull market continues to rage on with the S&P 500 (SPY) making new highs. That is the past...the question is what does the future hold? That is why 44 year investment veteran Steve Reitmeister provides this updated 2024 Stock Market Outlook to help you carve a path to outperformance the rest of the year. Read on below for the full story...

3 Energy Stocks Set to Soar Beyond Expectations

Given the geopolitical tensions, increasing global oil demand, and supply adjustments, the energy sector is poised for robust growth. Therefore, investors might consider investing in energy stocks TechnipFMC (FTI), Weatherford International (WFRD), and ChampionX (CHX), which are poised to exceed expectations. Keep reading…

Has Carnival (CCL) Stock Turned Into a Buy After Earnings Release?

Carnival Corporation (CCL) reported record revenue in its most recent quarter but still faces a negative bottom line. The collapse of Francis Scott Key Bridge brings more uncertainty to its financials. Given these events, what stance should one take with CCL stock? Read more to find out…

3 China Stocks Positioned for Long-Term Growth

Despite facing challenges, the Chinese economy has demonstrated resilience, as evidenced by recent robust industrial output and retail sales data. Given this outlook, it might be an opportune time to own three top-notch China stocks, JD.com, Inc. (JD), China Automotive Systems (CAAS), and Youdao, Inc. (DAO). Read on…

Investor Alert: “Buy the Rumor, Sell the News!”

Everyone knows that the Fed is going to cut rates at some point this year. That is the worst kept secret on the planet helping to explain how we keep making new highs for the for the S&P 500 (SPY). Unfortunately that creates an interesting predicament for stocks after rates are cut. Plus another hurdle in the 2024 Presidential election. Steve Reitmeister is here to share his insights on the market outlook along with a preview of his top 12 stocks to outperform. Read on for more...

Read More Stories

More Marriott International Inc. (MAR) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All MAR News