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.

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 $16.9 million.
  • VAC has traded 9,482 shares today.
  • VAC is trading at a new lifetime high.

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More details on VAC:

Marriott Vacations Worldwide Corporation develops, markets, sells, and manages vacation ownership and related products under the Marriott Vacation Club and Grand Residences by Marriott brands. The stock currently has a dividend yield of 1.3%. VAC has a PE ratio of 33.7. Currently there are 2 analysts that rate 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 156,900 shares per day over the past 30 days. Marriott Vacations Worldwide has a market cap of $2.5 billion and is part of the services sector and leisure industry. The stock has a beta of 0.80 and a short float of 2.4% with 3.37 days to cover. Shares are up 5.3% year-to-date as of the close of trading on Thursday.

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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 largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The debt-to-equity ratio is somewhat low, currently at 0.63, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
  • Net operating cash flow has significantly increased by 117.94% to $85.00 million when compared to the same quarter last year. In addition, MARRIOTT VACATIONS WORLDWIDE has also vastly surpassed the industry average cash flow growth rate of -74.97%.
  • 36.59% is the gross profit margin for MARRIOTT VACATIONS WORLDWIDE which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, VAC's net profit margin of 0.19% significantly trails the industry average.
  • Compared to its closing price of one year ago, VAC's share price has jumped by 44.40%, 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.
  • MARRIOTT VACATIONS WORLDWIDE has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, MARRIOTT VACATIONS WORLDWIDE increased its bottom line by earning $2.30 versus $2.17 in the prior year. This year, the market expects an improvement in earnings ($3.31 versus $2.30).

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