VAC Should I Buy
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Marriott Vacations Worldwide Corp (VAC) is not a strong buy at this moment for a beginner investor with a long-term strategy. Despite some positive news on adjusted EPS and revenue exceeding expectations, the company's financial health shows significant declines in net income and EPS. Additionally, the stock is currently overbought, as indicated by the RSI, and there are no strong trading signals from Intellectia Proprietary Trading Signals. Holding the stock for now would be a more prudent approach until clearer signs of recovery and stability emerge.
The MACD histogram is positive at 0.962, indicating bullish momentum, but the RSI at 81.536 suggests the stock is overbought. Moving averages are converging, signaling indecision. Key resistance levels are at R1: 69.209 and R2: 74.137, while support levels are at S1: 53.257 and S2: 48.329.
Adjusted EPS for Q4 exceeded expectations at $1.
Revenue for Q4 surpassed estimates at $1.323 billion.
FY26 adjusted EPS guidance is above estimates, indicating potential growth.
System-wide occupancy nearing 90%.
Net income dropped significantly to -$431 million, down 962% YoY.
EPS dropped to -12.42, down 1048.09% YoY.
Pomerantz LLP is investigating the company for potential securities fraud.
Contract sales declined by 4% in Q4, with a 30% decline anticipated in the Asia Pacific business.
The stock is overbought, as indicated by RSI.
In Q4 2025, revenue dropped by 2.73% YoY to $856 million. Net income plummeted to -$431 million, down 962% YoY, and EPS fell to -12.42, down 1048.09% YoY. However, gross margin increased slightly to 71.61%, up 0.99% YoY.
Mixed ratings from analysts. Goldman Sachs maintains a Sell rating with a price target of $61. Stifel and Barclays are more optimistic, with Buy and Overweight ratings and price targets of $85 and $80, respectively. Morgan Stanley downgraded the stock to Underweight with a price target of $52, citing concerns about the sector and potential downward revisions to estimates.
