3 Resort Stocks for Active Investors

Profit-taking in the leisure/resort hotel sector may be creating short-term opportunities for traders and active investors looking for to buy weakness in bull market territory.

Shares of Host Hotels & Resorts (NYSE: HST) had closed lower for five out of six trading days heading into trading on Wednesday, and continued to trade just outside of technically oversold territory. The stock earned an intraday upgrade to a “consider buying” 8 out of 10, and has a short-term, positive edge of more than half a percent.

HST has been trading in bull market territory since early January. And the current sell-off in the stock represents the first significant pullback since Host Hotels & Resorts climbed back above this level.

Also only recently above its 200-day moving average and pulling back in Wednesday’s session are shares of Starwood Hotels & Resorts Worldwide Inc. (NYSE: HOT). HOT has pulled back for two days in a row, three out of the last four, after selling off by well over 2%.

Starwood Hotels & Resorts has a positive edge in the short-term of just under three-quarters of a percent. Like Host Hotels & Resorts, HOT has earned 8 out of 10 ratings, putting the stock in our “consider buying” category of stocks with a statistically significant likelihood of short-term outperformance.

Lastly, with a positive edge of half a percent and sharing “consider buying”, 8 out of 10 ratings with Host and Starwood above, Marriott International (NYSE: MAR) pulled back by just over 1% in Wednesday’s trading. Down two in a row, and four out of the past five, shares of MAR are trading at new, two-week lows for the first time since rallying out of bear market territory in the first half of January.

Coming Spring 2012: the second edition of How Markets Really Work: A Quantitative Guide to Stock Market Behavior by Larry Connors and Cesar Alvarez. Click here to learn more.

David Penn is Editor in Chief of TradingMarkets.com