Trade-Ideas LLC identified

3M

(

MMM

) as a pre-market leader 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 $464.2 million.
  • MMM traded 15,630 shares today in the pre-market hours as of 9:23 AM.
  • MMM is up 2.8% today from Friday's close.

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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 3%. MMM has a PE ratio of 18. Currently there are 5 analysts that rate 3M a buy, 2 analysts rate it a sell, and 5 rate it a hold.

The average volume for 3M has been 2.6 million shares per day over the past 30 days. 3M has a market cap of $84.8 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.20 and a short float of 1.2% with 2.21 days to cover. Shares are down 7.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates 3M as a

buy

. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • 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 54.33%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.80% is above that of the industry average.
  • 3M CO's earnings per share improvement from the most recent quarter was slightly positive. 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 $7.49 versus $6.72 in the prior year. This year, the market expects an improvement in earnings ($7.55 versus $7.49).
  • The debt-to-equity ratio is somewhat low, currently at 0.92, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.91 is somewhat weak and could be cause for future problems.
  • MMM, with its decline in revenue, slightly underperformed the industry average of 3.2%. Since the same quarter one year prior, revenues slightly dropped by 5.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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