Player Avatar DaddioResources (98.67) Submitted: 12/5/2012 7:46:57 AM : Outperform Start Price: $40.27 VAC Score: +5.32

These guys are growing no matter what the economy or Congress/The President propose...PER ZACK'S ...Based in Orlando, Marriott Vacations Worldwide spun-off from Marriott International in late 2011. Marriott Vacations is a developer, marketer, seller and manager of vacation ownership resorts and vacation club, destination club and exchange programs, principally under the Marriott and Ritz-Carlton brands and trademarks. The company has three segments: North America, Luxury and Europe, and Asia-Pacific. Based on the strength in its North America segment, management raised its adjusted earnings per share outlook for 2012 to between $1.17 and $1.31 from the prior projection of $1.03 to $1.17. Adjusted EBITDA guidance was also raised to between $130 million and $140 million from $115 million to $125 million. Rising Earnings Estimate RevisionsOver the last 30 days, three out of 4 estimates have been revised upward for both 2012 and 2013. The Zacks Consensus Estimate for this year is up 10.4% to $1.27, while the Zacks Consensus Estimate for next year has climbed 17.0% to $1.79. These outlooks suggest year-over-year growth of 114.8% for 2012 and roughly 41.4% for 2013. The valuation for Marriott Vacations Worldwide looks compelling compared with its peers by most metrics. On a price-to-book (P/B) basis, shares trade at 1.19x, a discount to the peer group average of 1.96x. Also, the company has a price-to-sales (P/S) ratio of 0.84, a 46.2% discount to the peer group average of 1.56. Moreover, the company’s long-term estimated earnings per share growth rate remains strong at 30.0%.

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