Trade-Ideas LLC identified Martin Marietta Materials ( MLM) as a "water-logged and getting wetter" (weak stocks crossing below support 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 $91.5 million.
- MLM has traded 232,717 shares today.
- MLM traded in a range 204.5% of the normal price range with a price range of $6.76.
- MLM traded below its daily resistance level (quality: 13 days, meaning that the stock is crossing a resistance level set by the last 13 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' 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 negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower. EXCLUSIVE OFFER: Get the inside scoop on opportunities in MLM with the Ticky from Trade-Ideas. See the FREE profile for MLM NOW at Trade-Ideas 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 0.9%. MLM has a PE ratio of 4. 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 755,400 shares per day over the past 30 days. Martin Marietta has a market cap of $11.1 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.14 and a short float of 7.9% with 9.12 days to cover. Shares are up 26.8% year-to-date as of the close of trading on Tuesday. EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE. 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 solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins. Highlights from the ratings report include:
- 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.
- 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 ($6.71 versus $4.29).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Construction Materials industry average. The net income increased by 30.1% when compared to the same quarter one year prior, rising from $63.96 million to $83.19 million.
- 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.
- You can view the full Martin Marietta Materials Ratings Report.
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