Martin Marietta Materials (MLM) Showing Signs Of Being A Momo Momentum Stock
Trade-Ideas LLC identified
(
) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Martin Marietta Materials as such a stock due to the following factors:
- MLM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $243.4 million.
- MLM has a PE ratio of 38.
- MLM is currently in the upper 30% of its 1-year range.
- MLM is in the upper 25% of its 20-day range.
- MLM is in the upper 35% of its 5-day range.
- MLM is currently trading above yesterday's high.
- MLM has experienced a gap between today's open and yesterday's close of 0.8%.
'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.
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More details on MLM:
Martin Marietta Materials, Inc., together with its subsidiaries, supplies aggregates products and heavy building materials for the construction industry in the United States and internationally. The stock currently has a dividend yield of 1.1%. MLM has a PE ratio of 38. Currently there are 5 analysts that rate Martin Marietta Materials a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Martin Marietta Materials has been 1.0 million shares per day over the past 30 days. Martin Marietta has a market cap of $10.1 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 0.93 and a short float of 8% with 3.05 days to cover. Shares are up 39.2% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Martin Marietta Materials as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, compelling growth in net income, impressive record of earnings per share growth and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 8.2%. Since the same quarter one year prior, revenues slightly increased by 7.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 120.25% and other important driving factors, this stock has surged by 28.92% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Construction Materials industry. The net income increased by 118.6% when compared to the same quarter one year prior, rising from $53.74 million to $117.50 million.
- Net operating cash flow has increased to $192.53 million or 46.67% when compared to the same quarter last year. Despite an increase in cash flow, MARTIN MARIETTA MATERIALS's cash flow growth rate is still lower than the industry average growth rate of 63.43%.
- MARTIN MARIETTA MATERIALS reported significant earnings per share improvement 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, MARTIN MARIETTA MATERIALS reported lower earnings of $2.53 versus $2.61 in the prior year. This year, the market expects an improvement in earnings ($4.76 versus $2.53).
- You can view the full Martin Marietta Materials Ratings Report.
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