Marriott Vacations: Stellar Sales Activity Supports The Recent Rally (Downgrade)

Seeking Profits 5.64K Followers Follow Summary Marriott Vacations rallied 40% over the past year, driven by robust VOI sales and resilient recurring revenue streams. Q2 results exceeded expectations, with adjusted EBITDA up 6% and contract sales rising 22%, supported by effective marketing and stable credit quality. VAC increased full-year EBITDA and EPS guidance, reflecting stronger-than-anticipated VOI demand and improved profitability outlook. With shares near fair value (~$110), I move VAC to "Hold," expecting market-like returns as upside is largely realized. Getty Images Shares of Marriott Vacations Worldwide Corporation ( VAC ) have been an excellent performer over the past year, rallying about 40%. The timeshare, or vacation ownership interest (“VOI”), company has benefited from its recurring revenue, which makes the business a bit less cyclical than other travel and This article was written by Seeking Profits 5.64K Followers Follow Over fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know! Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.