
Marriott International (MAR) Is Today's Storm The Castle Stock
Trade-Ideas LLC identified
(
) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) 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 $174.3 million.
- MAR has traded 1.9 million shares today.
- MAR is trading at 1.86 times the normal volume for the stock at this time of day.
- MAR crossed above its 200-day simple moving average.
'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize on. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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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 26. 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 2.7 million shares per day over the past 30 days. Marriott International has a market cap of $19.9 billion and is part of the services sector and leisure industry. The stock has a beta of 1.32 and a short float of 8.1% with 7.25 days to cover. Shares are down 5.4% year-to-date as of the close of trading on Wednesday.
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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, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. 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 3.3%. Since the same quarter one year prior, revenues slightly increased by 5.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- MARRIOTT INTL INC has improved earnings per share by 35.9% 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 ($3.13 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 25.0% when compared to the same quarter one year prior, going from $192.00 million to $240.00 million.
- Net operating cash flow has remained constant at $490.00 million with no significant change when compared to the same quarter last year. In addition, MARRIOTT INTL INC has modestly surpassed the industry average cash flow growth rate of -4.90%.
- You can view the full Marriott International Ratings Report.
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