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

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.