12 Most Undervalued Travel Stocks to Buy According to Hedge Funds

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4) Marriott International, Inc. (NASDAQ:MAR)

Forward P/E Ratio as of 13 September: 20.92x

Number of Hedge Funds: 54

Marriott International, Inc. (NASDAQ:MAR) owns and operates hotels and motels. It provides hotel accommodations, luxury suites, car rental, recreational facilities, and other travel-related amenities.

Wall Street analysts believe that Marriott International, Inc. (NASDAQ:MAR) should see strong revenue and earnings growth given its industry-leading brand intangible together with switching cost advantages, which have been further expanded in comparison to the industry and peers. These competitive advantages were strengthened by its portfolio scale, management expertise, strong loyalty program, and expansion into adjacent verticals.

The recent 2023 launches of the Spark and StudioRes brands extend the company’s reach into the midscale and extended-stay segments. Apart from this, these launches can add several hundred hotels over the upcoming several years.

Marriott International, Inc. (NASDAQ:MAR)’s acquisition of Starwood (wrapped up in September 2016) and its partnership with MGM’s Vegas portfolio strengthened the company’s long-term brand advantage. This is because Starwood’s luxury portfolio and MGM’s strong presence in the gaming mecca complement Marriott International, Inc. (NASDAQ:MAR)’s dominant position in North America.

Analysts at Barclays increased their price target on shares of Marriott International, Inc. (NASDAQ:MAR) from $240.00 to $251.00, giving it an “Equal-weight” rating on 17th July. Overall, 54 hedge funds held stakes in Marriott International, Inc. (NASDAQ:MAR) in the second quarter, with positions worth $2.12 billion.

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