Trade-Ideas LLC identified Marriott International ( MAR) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Marriott International as such a stock due to the following factors:

  • MAR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $135.6 million.
  • MAR has traded 1.3 million shares today.
  • MAR is trading at 13.90 times the normal volume for the stock at this time of day.
  • MAR is trading at a new low 3.00% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on MAR:

Marriott International, Inc. operates, franchises, and licenses hotels and timeshare properties worldwide. It operates through three segments: North American Full-Service, North American Limited-Service, and International. The stock currently has a dividend yield of 1.4%. MAR has a PE ratio of 25. Currently there are 6 analysts that rate Marriott International a buy, 2 analysts rate it a sell, and 8 rate it a hold.

The average volume for Marriott International has been 2.3 million shares per day over the past 30 days. Marriott International has a market cap of $19.4 billion and is part of the services sector and leisure industry. The stock has a beta of 1.31 and a short float of 7.2% with 7.50 days to cover. Shares are down 7.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Marriott International as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • MAR's revenue growth has slightly outpaced the industry average of 4.0%. Since the same quarter one year prior, revenues slightly increased by 5.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • MARRIOTT INTL INC has improved earnings per share by 35.9% 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, MARRIOTT INTL INC increased its bottom line by earning $2.54 versus $2.01 in the prior year. This year, the market expects an improvement in earnings ($3.13 versus $2.54).
  • 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 25.0% when compared to the same quarter one year prior, going from $192.00 million to $240.00 million.
  • After a year of stock price fluctuations, the net result is that MAR's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. 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.
  • Net operating cash flow has remained constant at $490.00 million with no significant change when compared to the same quarter last year. In addition, MARRIOTT INTL INC has modestly surpassed the industry average cash flow growth rate of -7.88%.

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