Watch Out: Barbarians At The Gate For Marriott International (MAR)
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 International as such a stock due to the following factors:
- MAR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $104.0 million.
- MAR has traded 4.8 million shares today.
- MAR traded in a range 219.3% of the normal price range with a price range of $4.06.
- MAR traded above its daily resistance level (quality: 3 days, meaning that the stock is crossing a resistance level set by the last 3 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 MAR:
Marriott International, Inc. operates, franchises, and licenses hotels and timeshare properties worldwide. It operates through three segments: North American Full-Service, North American Limited-Service, and International. The stock currently has a dividend yield of 1.3%. MAR has a PE ratio of 24. Currently there are 7 analysts that rate Marriott International a buy, 2 analysts rate it a sell, and 6 rate it a hold.
The average volume for Marriott International has been 2.5 million shares per day over the past 30 days. Marriott International has a market cap of $19.2 billion and is part of the services sector and leisure industry. The stock has a beta of 1.30 and a short float of 10.8% with 15.66 days to cover. Shares are down 6.8% year-to-date as of the close of trading on Friday.
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Analysis:
rates Marriott International as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, impressive record of earnings per share growth and increase in net income. We feel its strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- MAR's revenue growth has slightly outpaced the industry average of 1.4%. Since the same quarter one year prior, revenues slightly increased by 3.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- MARRIOTT INTL INC has improved earnings per share by 20.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MARRIOTT INTL INC increased its bottom line by earning $2.54 versus $2.01 in the prior year. This year, the market expects an improvement in earnings ($3.12 versus $2.54).
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Hotels, Restaurants & Leisure industry average. The net income increased by 9.4% when compared to the same quarter one year prior, going from $192.00 million to $210.00 million.
- Net operating cash flow has increased to $328.00 million or 16.72% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 2.77%.
- After a year of stock price fluctuations, the net result is that MAR's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
- You can view the full Marriott International Ratings Report.
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