(VAC) Marriot Vacations Worldwide - Ratings and Ratios

Marriott Vacations Worldwide Corporation is a global vacation ownership company that develops, markets, and manages vacation ownership and related products under several prestigious brands, including Marriott, Sheraton, Westin, and Ritz-Carlton. The company operates through two primary segments: Vacation Ownership, which focuses on the development and sale of vacation ownership products, and Exchange & Third-Party Management, which provides exchange network and membership programs, as well as management services to other resorts and lodging properties. With a diverse portfolio of brands and a strong presence in the vacation ownership market, Marriott Vacations Worldwide has established itself as a leader in the industry.

Marriott Vacations Worldwides business model is designed to generate revenue through a variety of channels, including the sale of vacation ownership products, financing consumer purchases, and renting vacation ownership inventory. The companys upper upscale tier vacation ownership products are sold primarily through a network of resort-based sales centers and certain off-site sales locations. Additionally, Marriott Vacations Worldwides Interval International and Aqua-Aston businesses provide exchange network and membership programs, as well as management services to other resorts and lodging properties, further diversifying the companys revenue streams.

From a technical analysis perspective, the stock has been trading near its 20-day simple moving average (SMA) of $67.17, with a slight bullish bias. The 50-day SMA is at $61.08, indicating a potential support level, while the 200-day SMA is at $74.63, representing a significant resistance level. Given the current ATR of 2.31, representing a 3.43% daily price range, we can expect the stock to continue trading within a relatively narrow range in the short term.

Using a combination of technical and fundamental analysis, we can forecast that Marriott Vacations Worldwides stock is likely to experience a moderate increase in the coming months. The companys P/E ratio of 11.26 and forward P/E of 12.09 suggest that the stock is undervalued relative to its earnings growth potential. Additionally, the companys RoE of 9.39 indicates a relatively stable and profitable business model. As the stock continues to trade near its 20-day SMA, a breakout above $70 could signal a further increase towards the 200-day SMA at $74.63. Conversely, a decline below $61.08 could indicate a more significant correction.