Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

Marriott International

(

MAR

) as a momo momentum 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 $165.8 million.
  • MAR has a PE ratio of 32.2.
  • MAR is currently in the upper 30% of its 1-year range.
  • MAR is in the upper 25% of its 20-day range.
  • MAR is in the upper 35% of its 5-day range.
  • MAR is currently trading above yesterday's high.
  • MAR has experienced a gap between today's open and yesterday's close of 1.4%.

'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 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%. MAR has a PE ratio of 32.2. Currently there are 8 analysts that rate Marriott International a buy, 2 analysts rate it a sell, and 7 rate it a hold.

The average volume for Marriott International has been 2.0 million shares per day over the past 30 days. Marriott International has a market cap of $22.7 billion and is part of the services sector and leisure industry. The stock has a beta of 1.17 and a short float of 6.8% with 6.84 days to cover. Shares are up 4.9% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Marriott International as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 7.9%. Since the same quarter one year prior, revenues rose by 10.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 38.77% and other important driving factors, this stock has surged by 42.19% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MAR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • MARRIOTT INTL INC has improved earnings per share by 38.8% 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 ($3.08 versus $2.54).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 30.5% when compared to the same quarter one year prior, rising from $151.00 million to $197.00 million.
  • The gross profit margin for MARRIOTT INTL INC is currently extremely low, coming in at 9.08%. Regardless of MAR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 5.53% trails the industry average.

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