Trade-Ideas: 3M (MMM) Is Today's Unusual Social Activity Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified 3M (MMM) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified 3M as such a stock due to the following factors:
- MMM has 13x the normal benchmarked social activity for this time of the day compared to its average of 3.81 mentions/day.
- MMM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $279.3 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.EXCLUSIVE OFFER: Get the inside scoop on opportunities in MMM with the Ticky from Trade-Ideas. See the FREE profile for MMM NOW at Trade-IdeasMore details on MMM: 3M Company operates as a diversified technology company worldwide. The stock currently has a dividend yield of 2.2%. MMM has a PE ratio of 18.4. Currently there are 7 analysts that rate 3M a buy, 1 analyst rates it a sell, and 5 rate it a hold.The average volume for 3M has been 2.7 million shares per day over the past 30 days. 3M has a market cap of $80.6 billion and is part of the conglomerates sector and conglomerates industry. The stock has a beta of 1.12 and a short float of 1.9% with 5.17 days to cover. Shares are up 25.7% year to date as of the close of trading on Wednesday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates 3M as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 10.6%. Since the same quarter one year prior, revenues slightly increased by 2.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The current debt-to-equity ratio, 0.33, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.48, which illustrates the ability to avoid short-term cash problems.
- Compared to where it was 12 months ago, this stock has enjoyed a nice rise of 27.08% which was in line with the performance of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MMM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The gross profit margin for 3M CO is rather high; currently it is at 52.41%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.78% is above that of the industry average.
- Net operating cash flow has increased to $994.00 million or 20.04% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -0.35%.
- You can view the full 3M Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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