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
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified 3M as such a stock due to the following factors:
- MMM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $307.1 million.
- MMM has traded 1.9 million shares today.
- MMM is trading at a new lifetime high.
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More details on MMM:
3M Company operates as a diversified technology company worldwide. The stock currently has a dividend yield of 2.1%. MMM has a PE ratio of 18.9. 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 2.4 million shares per day over the past 30 days. 3M has a market cap of $82.6 billion and is part of the conglomerates sector and conglomerates industry. The stock has a beta of 1.05 and a short float of 1.7% with 4.45 days to cover. Shares are up 30.1% year to date as of the close of trading on Friday.
rates 3M as a
. 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, growth in earnings per share, solid stock price performance 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:
- MMM's revenue growth has slightly outpaced the industry average of 2.9%. Since the same quarter one year prior, revenues slightly increased by 5.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.32, 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 1.06, which illustrates the ability to avoid short-term cash problems.
- 3M CO has improved earnings per share by 7.9% 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, 3M CO increased its bottom line by earning $6.31 versus $5.96 in the prior year. This year, the market expects an improvement in earnings ($6.68 versus $6.31).
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 39.71% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- 47.60% is the gross profit margin for 3M CO which we consider to be strong. Regardless of MMM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MMM's net profit margin of 15.53% compares favorably to the industry average.
- You can view the full 3M Ratings Report.