Trade-Ideas: Marriott Vacations Worldwide (VAC) Is Today's New Lifetime High Stock

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 or Stephanie Link.

Trade-Ideas LLC identified Marriott Vacations Worldwide ( VAC) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Marriott Vacations Worldwide as such a stock due to the following factors:

  • VAC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.7 million.
  • VAC has traded 184,646 shares today.
  • VAC is trading at a new lifetime high.

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More details on VAC:

Marriott Vacations Worldwide Corporation engages in the development, marketing, sale, and management of vacation ownership and related products in the United States and internationally. VAC has a PE ratio of 31.3. Currently there are 3 analysts that rate Marriott Vacations Worldwide a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Marriott Vacations Worldwide has been 195,500 shares per day over the past 30 days. Marriott Vacations Worldwide has a market cap of $1.6 billion and is part of the services sector and leisure industry. Shares are up 4.7% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Marriott Vacations Worldwide as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Highlights from the ratings report include:
  • VAC's revenue growth has slightly outpaced the industry average of 4.6%. Since the same quarter one year prior, revenues rose by 10.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.53, is low and is below the industry average, implying that there has been successful management of debt levels.
  • 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. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Hotels, Restaurants & Leisure industry and the overall market, MARRIOTT VACATIONS WORLDWIDE's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Net operating cash flow has decreased to $45.00 million or 44.44% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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