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 $307.9 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 1.8% with 4.58 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 solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and growth in earnings per share. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- 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 29.33% over the past year, a rise that has exceeded that 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.
- Despite its growing revenue, the company underperformed as compared with the industry average of 4.1%. Since the same quarter one year prior, revenues slightly increased by 2.9%. 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 1.39, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has increased to $1,679.00 million or 20.87% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -2.30%.
- 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 $6.31 versus $5.96 in the prior year. This year, the market expects an improvement in earnings ($6.70 versus $6.31).
- You can view the full 3M Ratings Report.