After an unseasonably strong September, traders are eager to protect their profits, or perhaps even extend them into the new month. Bearing this in mind, we compiled a list of the 25 best stocks to own during October, and Marriott International Inc (NASDAQ:MAR) is among them.
Per Schaeffer's Senior Quantitative Analyst Rocky White, MAR finished the month of October higher eight times in the past 10 years, averaging a gain of 4%. The equity is also the best of two travel and leisure names on this list, outpacing Las Vegas Sands (LVS).
Marriot International stock was last seen down 1.4% to trade at $50.41. While familiar pressure at the $255 level is coming into play, the security is not too far off from its April 11, record high of $260.57, and sports a 26.4% year-over-year lead. Plus, the 20-day moving average looks ready to contain any additional pullbacks.
Options traders are leaning bearish, and an unwinding of this pessimism could provide tailwinds. Over at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), MAR's 50-day put/call volume ratio of 1.49 sits in the elevated 82nd percentile of its annual range, showing a fierce appetite for puts lately.
The security could also benefit from a shift in analyst sentiment, as 17 of 23 analysts in questions still sport a tepid "hold." Plus, options are affordably priced at the moment, per the stock's Schaeffer's Volatility Index (SVI) rating of 20%, which ranks in the low 8th annual percentile.