Marriott stock most vulnerable on coronavirus threat, traders warn
Coronavirus fears hit travel stocks yet again on Wednesday.
One stock appears most vulnerable to additional draw back immediately after reporting earnings — Marriott, the world’s largest resort operator — in accordance to two market watchers.
Boris Schlossberg, running director of Forex technique at BK Asset Management, states Marriott appears far more vulnerable than Booking below.
Marriott “has a 15% to 20% publicity to Asia, it could be a lot more impacted,” Schlossberg stated on CNBC’s “Investing Nation” on Wednesday in advance of its earnings launch. “When you have a whole lot of empty hotel rooms, there [are] just fixed charges that you won’t be able to give away.”
Marriott has been tricky hit on the expectation vacation restrictions in Asia and purchaser wariness around vacation would hurt overall income. It has declined virtually 20% so much this yr.
“It really is not a scenario where you truly want to be prolonged … except if you are heading to be a pretty very long-phrase trader,” he reported.
Craig Johnson, main marketplace technician at Piper Sandler, agrees that Marriott’s posture seems to be tenuous.
“If you glance at that chart of Marriott, we are suitable back again at a extremely essential inflection position. We are retesting the uptrend assist line off of these 2016 lows. Failure to maintain that leaves assist at $118. Failure to hold [$118] leaves assist at $100,” mentioned Johnson throughout the very same section.
Marriott was trading at $121.53 on Wednesday afternoon. A drop to $100 implies 18% draw back.
“At this position in time, that assistance is heading to be actually vital. And I would not want to attempt to get extended the stock forward of this earnings print,” reported Johnson.
Marriott was a bit higher in prolonged investing Wednesday soon after topping fourth-quarter earnings estimates. Nonetheless, it skipped on earnings.