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 $10.3 million.
  • VAC has traded 257,604 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 26.8. Currently there is 1 analyst that rates Marriott Vacations Worldwide a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Marriott Vacations Worldwide has been 221,400 shares per day over the past 30 days. Marriott Vacations Worldwide has a market cap of $1.9 billion and is part of the services sector and leisure industry. The stock has a beta of 1.36 and a short float of 2.5% with 3.64 days to cover. Shares are up 25.4% year-to-date as of the close of trading on Thursday.

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 buy. 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, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • VAC's revenue growth has slightly outpaced the industry average of 0.6%. Since the same quarter one year prior, revenues slightly increased by 7.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.60, is low and is below the industry average, implying that there has been successful management of debt levels.
  • The strong earnings growth this company has enjoyed -- up -- has apparently played a role in driving up its share price by a solid 25.23%. In addition, the rise in the general market has likely contributed to this stock's strong performance during this past year.Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • MARRIOTT VACATIONS WORLDWIDE reported significant earnings per share improvement 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 year. We feel that this trend should continue. During the past fiscal year, MARRIOTT VACATIONS WORLDWIDE turned its bottom line around by earning $0.25 versus -$5.88 in the prior year. This year, the market expects an improvement in earnings ($2.37 versus $0.25).
  • 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 400.0% when compared to the same quarter one year prior, rising from $5.00 million to $25.00 million.

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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