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
) as a "water-logged and getting wetter" (weak stocks crossing below support 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 $167.7 million.
- MAR has traded 342,167 shares today.
- MAR traded in a range 216.1% of the normal price range with a price range of $3.38.
- MAR traded below its daily resistance level (quality: 273 days, meaning that the stock is crossing a resistance level set by the last 273 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' 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 negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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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 28. Currently there are 7 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 1.8 million shares per day over the past 30 days. Marriott International has a market cap of $20.5 billion and is part of the services sector and leisure industry. The stock has a beta of 1.52 and a short float of 6.4% with 5.65 days to cover. Shares are down 1.3% year-to-date as of the close of trading on Wednesday.
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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, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. 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 5.0%. Since the same quarter one year prior, revenues slightly increased by 6.7%. 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 28.1% 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 ($3.09 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 20.3% when compared to the same quarter one year prior, going from $172.00 million to $207.00 million.
- Net operating cash flow has increased to $262.00 million or 43.95% when compared to the same quarter last year. In addition, MARRIOTT INTL INC has also vastly surpassed the industry average cash flow growth rate of -72.82%.
- You can view the full Marriott International Ratings Report.