Marriott International Inc. (MAR): Today's Featured Services Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Marriott International ( MAR) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day down 0.4%. By the end of trading, Marriott International fell 48 cents (-1.2%) to $39.10 on average volume. Throughout the day, three million shares of Marriott International exchanged hands as compared to its average daily volume of 2.9 million shares. The stock ranged in price between $39-$39.47 after having opened the day at $39.35 as compared to the previous trading day's close of $39.58. Other companies within the Services sector that declined today were: Ultrapetrol Bahamas ( ULTR), down 12.9%, ENGlobal Corporation ( ENG), down 11.5%, China Auto Logistics ( CALI), down 11.2%, and China HGS Real Estate ( HGSH), down 10.3%.
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Marriott International, Inc. operates, franchises, and licenses hotels and corporate housing properties worldwide. Marriott International has a market cap of $12.59 billion and is part of the leisure industry. The company has a P/E ratio of 42.9, below the average leisure industry P/E ratio of 65 and above the S&P 500 P/E ratio of 17.7. Shares are up 33.7% year to date as of the close of trading on Thursday. Currently there are 10 analysts that rate Marriott International a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates Marriott International as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, growth in earnings per share and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins.

On the positive front, LodgeNet Interactive Corporation ( LNET), up 32%, Navarre Corporation ( NAVR), up 15.4%, DS Torm ( TRMD), up 13.1%, and Newlead Holdings ( NEWL), up 12.1%, were all gainers within the services sector with GNC Acquisition Holdings ( GNC) being today's featured services sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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