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 Martin Marietta Materials ( MLM) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Martin Marietta Materials as such a stock due to the following factors:
- MLM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $72.9 million.
- MLM is up 2.1% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in MLM with the Ticky from Trade-Ideas. See the FREE profile for MLM NOW at Trade-Ideas More details on MLM: Martin Marietta Materials, Inc., together with its subsidiaries, produces and sells aggregates for the construction industry. The company operates in four segments: Mid-America Group, Southeast Group, West Group, and Specialty Products. The stock currently has a dividend yield of 1.2%. MLM has a PE ratio of 47.4. Currently there are 2 analysts that rate Martin Marietta Materials a buy, no analysts rate it a sell, and 5 rate it a hold. The average volume for Martin Marietta Materials has been 661,200 shares per day over the past 30 days. Martin Marietta has a market cap of $6.1 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.36 and a short float of 22.2% with 16.29 days to cover. Shares are up 30.2% 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 Martin Marietta Materials 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, compelling growth in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Highlights from the ratings report include:
- MLM's revenue growth has slightly outpaced the industry average of 4.8%. Since the same quarter one year prior, revenues rose by 11.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. 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.
- MARTIN MARIETTA MATERIALS has improved earnings per share by 21.7% 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, MARTIN MARIETTA MATERIALS increased its bottom line by earning $2.61 versus $1.83 in the prior year. This year, the market expects an improvement in earnings ($3.88 versus $2.61).
- The net income growth from the same quarter one year ago has significantly exceeded that of the Construction Materials industry average, but is less than that of the S&P 500. The net income increased by 22.3% when compared to the same quarter one year prior, going from -$27.84 million to -$21.62 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Construction Materials industry and the overall market on the basis of return on equity, MARTIN MARIETTA MATERIALS has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- You can view the full Martin Marietta Materials Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.