Don't Miss Today's Strong And Under The Radar Stock: Martin Marietta Materials (MLM)

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 strong and under the radar 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 $71.0 million.
  • MLM is making at least a new 3-day high.
  • MLM has a PE ratio of 51.9.
  • MLM is mentioned 1.42 times per day on StockTwits.
  • MLM has not yet been mentioned on StockTwits today.
  • MLM is currently in the upper 20% of its 1-year range.
  • MLM is in the upper 35% of its 20-day range.
  • MLM is in the upper 45% of its 5-day range.
  • MLM is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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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 51.9. Currently there are 3 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 904,200 shares per day over the past 30 days. Martin Marietta has a market cap of $8.7 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.32 and a short float of 12% with 8.78 days to cover. Shares are up 30.3% 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 Martin Marietta Materials as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • MLM's very impressive revenue growth greatly exceeded the industry average of 10.6%. Since the same quarter one year prior, revenues leaped by 50.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has increased to $131.27 million or 12.02% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -26.40%.
  • Compared to its closing price of one year ago, MLM's share price has jumped by 28.01%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • MARTIN MARIETTA MATERIALS's earnings per share declined by 49.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. 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 ($3.54 versus $2.61).
  • Despite currently having a low debt-to-equity ratio of 0.37, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.37 is sturdy.

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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