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 an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Martin Marietta Materials as such a stock due to the following factors:

  • MLM has 10x the normal benchmarked social activity for this time of the day compared to its average of 1.81 mentions/day.
  • MLM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $162.2 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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 1.3%. MLM has a PE ratio of 48.0. 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 749,100 shares per day over the past 30 days. Martin Marietta has a market cap of $8.0 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.40 and a short float of 12.7% with 4.37 days to cover. Shares are up 24.4% year-to-date as of the close of trading on Tuesday.

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, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. 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 16.0%. 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 -0.42%.
  • 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 ($3.56 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.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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

null