3 Stocks Reiterated As A Buy: MMM, AIG, MRK
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.
NEW YORK (TheStreet) -- TheStreet Ratings team reiterated 3 stocks with a buy rating on Thursday based on 32 different data factors including general market action, fundamental analysis and technical indicators. The in-depth analysis of these ratings decisions goes as follows:
3M Co:
(NYSE:
) has been reiterated by TheStreet Ratings as a buy with a ratings score of A+. According to TheStreet Ratings team: 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, notable return on equity, 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:
- MMM's revenue growth has slightly outpaced the industry average of 3.9%. Since the same quarter one year prior, revenues slightly increased by 2.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.53, 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 1.13, which illustrates the ability to avoid short-term cash problems.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Industrial Conglomerates industry and the overall market, 3M CO's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for 3M CO is rather high; currently it is at 52.36%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 15.27% is above that of the industry average.
- Net operating cash flow has slightly increased to $2,183.00 million or 9.53% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -5.88%.
- You can view the full analysis from the report here: 3M Ratings Report
3M Company operates as a diversified technology company worldwide. 3M has a market cap of $103.0 billion and is part of the industrial goods sector and industrial industry. Shares are down 1.6% year-to-date as of the close of trading on Wednesday.
American International Group Inc:
(NYSE:
) has been reiterated by TheStreet Ratings as a buy with a ratings score of B-. According to TheStreet Ratings team: The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.
Highlights from the ratings report include:
- Although AIG's debt-to-equity ratio of 0.29 is very low, it is currently higher than that of the industry average.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The revenue fell significantly faster than the industry average of 21.0%. Since the same quarter one year prior, revenues slightly dropped by 10.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- AMERICAN INTERNATIONAL GROUP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, AMERICAN INTERNATIONAL GROUP reported lower earnings of $5.21 versus $6.07 in the prior year. For the next year, the market is expecting a contraction of 5.0% in earnings ($4.95 versus $5.21).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Insurance industry. The net income has significantly decreased by 66.9% when compared to the same quarter one year ago, falling from $1,978.00 million to $655.00 million.
- You can view the full analysis from the report here: American International Group Ratings Report
American International Group, Inc. provides insurance products and services for commercial, institutional, and individual customers in the United States, the Asia Pacific, and internationally. American International Group has a market cap of $74.7 billion and is part of the financial sector and insurance industry. Shares are down 2.3% year-to-date as of the close of trading on Wednesday.
Merck & Co Inc:
(NYSE:
) has been reiterated by TheStreet Ratings as a buy with a ratings score of A. According to TheStreet Ratings team: The company's strengths can be seen in multiple areas, such as its compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 836.7% when compared to the same quarter one year prior, rising from $781.00 million to $7,316.00 million.
- The current debt-to-equity ratio, 0.44, 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 1.19, which illustrates the ability to avoid short-term cash problems.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Pharmaceuticals industry and the overall market, MERCK & CO's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- The gross profit margin for MERCK & CO is currently very high, coming in at 78.22%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 69.79% significantly outperformed against the industry average.
- You can view the full analysis from the report here: Merck Ratings Report
Merck & Co., Inc. provides health care solutions worldwide. Merck has a market cap of $160.6 billion and is part of the health care sector and drugs industry. Shares are down 1.3% year-to-date as of the close of trading on Wednesday.
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