Trade-Ideas LLC identified Martin Marietta Materials ( MLM) as a strong on high relative volume 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 $201.3 million.
  • MLM has traded 56,631 shares today.
  • MLM is trading at 2.13 times the normal volume for the stock at this time of day.
  • MLM is trading at a new high 3.04% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 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 1.2%. 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 916,000 shares per day over the past 30 days. Martin Marietta has a market cap of $8.8 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 7.5% with 3.51 days to cover. Shares are down 0.9% year-to-date as of the close of trading on Tuesday.

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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 impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and compelling growth in net income. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • MARTIN MARIETTA MATERIALS has improved earnings per share by 34.0% 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, MARTIN MARIETTA MATERIALS increased its bottom line by earning $4.29 versus $2.53 in the prior year. This year, the market expects an improvement in earnings ($6.65 versus $4.29).
  • Despite currently having a low debt-to-equity ratio of 0.39, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that MLM's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.58 is high and demonstrates strong liquidity.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Construction Materials industry and the overall market on the basis of return on equity, MARTIN MARIETTA MATERIALS has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • Net operating cash flow has increased to $253.62 million or 40.87% 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 72.66%.
  • Despite the weak revenue results, MLM has outperformed against the industry average of 12.9%. Since the same quarter one year prior, revenues slightly dropped by 1.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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