Marriott Vacations Worldwide (VAC) Marked As A Barbarian At The Gate
Trade-Ideas LLC identified
(
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Marriott Vacations Worldwide as such a stock due to the following factors:
- VAC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $27.7 million.
- VAC has traded 544,425 shares today.
- VAC traded in a range 274.9% of the normal price range with a price range of $4.62.
- VAC traded above its daily resistance level (quality: 335 days, meaning that the stock is crossing a resistance level set by the last 335 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on VAC:
Marriott Vacations Worldwide Corporation develops, markets, sells, and manages vacation ownership and related products under the Marriott Vacation Club and Grand Residences by Marriott brands. The stock currently has a dividend yield of 1.8%. VAC has a PE ratio of 19. Currently there are 3 analysts that rate Marriott Vacations Worldwide a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Marriott Vacations Worldwide has been 326,400 shares per day over the past 30 days. Marriott Vacations Worldwide has a market cap of $1.9 billion and is part of the services sector and leisure industry. The stock has a beta of 0.92 and a short float of 9.4% with 6.79 days to cover. Shares are up 20.2% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Marriott Vacations Worldwide as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The debt-to-equity ratio is somewhat low, currently at 0.72, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
- MARRIOTT VACATIONS WORLDWIDE's earnings per share declined by 20.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MARRIOTT VACATIONS WORLDWIDE increased its bottom line by earning $3.82 versus $2.30 in the prior year. This year, the market expects an improvement in earnings ($4.53 versus $3.82).
- 37.31% is the gross profit margin for MARRIOTT VACATIONS WORLDWIDE which we consider to be strong. Regardless of VAC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 5.74% trails the industry average.
- VAC, with its decline in revenue, underperformed when compared the industry average of 10.7%. Since the same quarter one year prior, revenues slightly dropped by 0.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full Marriott Vacations Worldwide Ratings Report.
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