Will Marriott Help You Retire Rich?http://www.fool.com/retirement/general/2012/11/1/will-marriott-help-you-retire-rich.aspx Dan Caplinger
November 1, 2012
Now more than ever, a comfortable retirement depends on secure, stable investments. Unfortunately, the right stocks for retirement won't just fall into your lap. In this series, I look at 10 measures to show what makes a great retirement-oriented stock.
Marriott (NYSE: MAR ) is one of the most popular hotel chains among travelers, with an extensive network of domestic hotels combined with well-placed properties throughout the world. But during tough economic times in many places across the globe, corporate customers are cutting back, and revenue is plunging. How can Marriott turn the tide back toward growth? Below, we'll revisit how Marriott does on our 10-point scale.
The right stocks for retirees
Sure, you still want good returns, but you also need to manage your risk and protect yourself against bear markets, which can maul your finances at the worst possible time. The right stocks combine both of these elements in a single investment.
When scrutinizing a stock, retirees should look for:
With those factors in mind, let's take a closer look at Marriott.
Since we looked at Marriott last year, the company has lost a point, due to a drop in revenue compared to last year. But the stock has posted a reasonably nice gain of about 20% over the past year.
The hotel industry has had to deal with the double-hit of overall economic weakness combined with reluctance of businesses to spend on travel. Even though Starwood Hotels (NYSE: HOT ) has much greater international exposure than Marriott, both companies have seen fallout from troubles in areas like China and Europe.
Yet more recently, things have started to turn around for Marriott. In its third quarter, which it released in early October, Marriott said earnings per share grew by more than 50% from last year's quarter, beating expectations. The hotelier pointed to strong corporate bookings as well