Marriott Vacations Worldwide Corporation (VAC): A Bull Case Theory

We came across a bullish thesis on Marriott Vacations Worldwide Corporation (VAC) on Value Investing Subreddit Page by Psychological_Ad4317. In this article, we will summarize the bulls’ thesis on VAC. Marriott Vacations Worldwide Corporation (VAC)'s share was trading at $56.62 as of April 3^rd. VAC’s trailing was 10.09 according to Yahoo Finance.

Marriott Vacations Worldwide (VAC) is emerging as a compelling value opportunity amid market turbulence and recession fears. While conventional thinking might suggest timeshares and resort stays will decline in a downturn, much of this risk appears fully priced in. The company is trading at historically depressed valuation levels—its price-to-book ratio sits at just 0.81, near March 2020 lows, while its price-to-sales and P/E ratios are at all-time lows. Despite macro uncertainty, VAC generated $6.56 in EPS this year and is guiding for $6.30–$7.00 in FY25, signaling stable, albeit modest, earnings ahead. Notably, the stock now yields a 5% dividend, offering a strong income cushion. Insider buying around the $70 level further signals confidence from within, and with shares now trading at just $56, there is clear dislocation between valuation and fundamentals. While a recession could create headwinds, the downside appears limited given the current pricing, and any recovery or stabilization in the travel and leisure space could lead to a significant rerating. For value-focused investors, VAC offers an attractive combination of income, insider alignment, and undervaluation, with a skewed risk/reward profile that is hard to ignore—even in a shaky market environment.

Marriott Vacations Worldwide Corporation (VAC) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held VAC at the end of the fourth quarter which was 16 in the previous quarter. While we acknowledge the risk and potential of VAC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than VAC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.