Trade-Ideas LLC identified Martin Marietta Materials ( MLM) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) 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 $120.4 million.
  • MLM has traded 274,509 shares today.
  • MLM traded in a range 255.9% of the normal price range with a price range of $13.93.
  • MLM traded above its daily resistance level (quality: 3 days, meaning that the stock is crossing a resistance level set by the last 3 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on MLM:

Martin Marietta Materials, Inc., together with its subsidiaries, supplies aggregates products and heavy building materials for the construction industry in the United States and internationally. The stock currently has a dividend yield of 1.3%. MLM has a PE ratio of 3. Currently there are 5 analysts that rate Martin Marietta Materials a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Martin Marietta Materials has been 833,100 shares per day over the past 30 days. Martin Marietta has a market cap of $8.1 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.12 and a short float of 7.8% with 5.29 days to cover. Shares are down 13.7% year-to-date as of the close of trading on Monday.

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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, compelling growth in net income, impressive record of earnings per share growth and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 11.4%. Since the same quarter one year prior, revenues slightly increased by 7.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Construction Materials industry. The net income increased by 118.7% when compared to the same quarter one year prior, rising from $53.74 million to $117.54 million.
  • Net operating cash flow has increased to $192.51 million or 46.65% when compared to the same quarter last year. Despite an increase in cash flow, MARTIN MARIETTA MATERIALS's cash flow growth rate is still lower than the industry average growth rate of 80.45%.
  • MARTIN MARIETTA MATERIALS reported significant earnings per share improvement 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 reported lower earnings of $2.53 versus $2.61 in the prior year. This year, the market expects an improvement in earnings ($4.66 versus $2.53).

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