3M Co (MMM): Today's Featured Conglomerates Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

3M ( MMM) pushed the Conglomerates sector lower today making it today's featured Conglomerates laggard. The sector as a whole closed the day down 2.5%. By the end of trading, 3M fell $1.77 (-2%) to $87.31 on average volume. Throughout the day, 2.8 million shares of 3M exchanged hands as compared to its average daily volume of 3.1 million shares. The stock ranged in price between $87.07-$89.38 after having opened the day at $89.17 as compared to the previous trading day's close of $89.08. Other companies within the Conglomerates sector that declined today were: MGT Capital Investments ( MGT), down 12.4%, Harbinger Group ( HRG), down 6.2%, RLJ Entertainment ( RLJE), down 4.7%, and Lydall ( LDL), down 3.5%.
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3M Company operates as a diversified technology company worldwide. 3M has a market cap of $61.71 billion and is part of the conglomerates industry. The company has a P/E ratio of 14.2, below the S&P 500 P/E ratio of 17.7. Shares are up 9.1% year to date as of the close of trading on Tuesday. Currently there are eight analysts that rate 3M a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates 3M as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, solid stock price performance and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the conglomerates sector could consider SPDR Trust Series one ( SPY) while those bearish on the conglomerates sector could consider ProShares Short S&P 500 ( SH).

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