5 Best Stocks to Buy According to Richard Mashaal’s Senvest Management

4. Marriott Vacations Worldwide Corporation (NYSE: VAC)

Mashaal’s Stake Value: $155,921,000
Percentage of Richard Mashaal’s 13F Portfolio: 4.9%
Number of Hedge Fund Holders: 24

Marriott Vacations Worldwide Corporation (NYSE: VAC) is a pure-play public timeshare company. It was founded in 1984 and ranks fourth on the list of 10 best stocks to buy according to Richard Mashaal’s Senvest Management. Shares of the company rallied 75.58% in the last 12 months, resulting in a $6.33 billion market capitalization.

On July 28, Marriott Vacations Worldwide Corporation (NYSE: VAC) declared earnings results for the first three months of 2021. The earnings per share was $0.87, missing market predictions by $0.02. However, the revenue over the period was $979 million, beating the estimates by $58.77 million. On June 7, Deutsche Bank analyst Chris Woronka upgraded Marriott Vacations to “Buy” from “Hold” with a price target of $209, up from $168.

Richard Mashaal’s Senvest Management holds 895,174 shares of Marriott Vacations Worldwide Corporation (NYSE: VAC), worth $155.92 million. Hedge fund sentiment increased for Marriott Vacations in the first quarter of 2021. Insider Monkey’s data shows that 24 elite hedge funds held stakes in the company in the first quarter of 2021, up from 21 funds a quarter earlier.

Baron Funds, in its first quarter 2021 investor letter, mentioned Marriott Vacations Worldwide Corporation (NYSE: VAC). Here is what the fund has to say about Marriott in its letter:

“Our Consumer Discretionary investments have fared much better than the industry as a whole and are continuing to enjoying the same month-over-month improvements. Marriott Vacations Worldwide Corp.’s new contract sales improved by 27% over the prior quarter, and reservations the second half of 2021 are running 8% above pre-COVID levels.

Shares of timeshare company Marriott Vacations Worldwide Corp. increased in the quarter on accelerated sales driven largely by increased demand in Orlando and Hawaii. The company’s announcement of its acquisition of Welk also helped boost its share price. We think added inventory and cost synergies from its Welk acquisition will help improve the company’s balance sheet and cash flow profile.”