Trade-Ideas LLC identified Marriott Vacations Worldwide ( VAC) as a strong on high relative volume 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 $16.2 million.
  • VAC has traded 64,507 shares today.
  • VAC is trading at 13.08 times the normal volume for the stock at this time of day.
  • VAC is trading at a new high 14.09% 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 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 2.2%. VAC has a PE ratio of 2. Currently there are 3 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 234,800 shares per day over the past 30 days. Marriott Vacations Worldwide has a market cap of $1.7 billion and is part of the services sector and leisure industry. The stock has a beta of 0.93 and a short float of 5.4% with 6.18 days to cover. Shares are down 4.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Marriott Vacations Worldwide as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The debt-to-equity ratio is somewhat low, currently at 0.72, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
  • MARRIOTT VACATIONS WORLDWIDE's earnings per share declined by 10.7% 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, 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 ($3.49 versus $2.30).
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Hotels, Restaurants & Leisure industry average. The net income has decreased by 13.8% when compared to the same quarter one year ago, dropping from $25.00 million to $21.56 million.
  • Net operating cash flow has significantly decreased to $22.06 million or 79.57% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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