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

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 higher today making it today's featured conglomerates winner. The sector as a whole closed the day up 0.3%. By the end of trading, 3M rose $1.49 (1.4%) to $106.04 on average volume. Throughout the day, 3,117,840 shares of 3M exchanged hands as compared to its average daily volume of 2,690,200 shares. The stock ranged in a price between $104.91-$106.38 after having opened the day at $105.04 as compared to the previous trading day's close of $104.55. Other companies within the Conglomerates sector that increased today were: Lydall ( LDL), up 4.9%, Tredegar Corporation ( TG), up 2.8%, Harbinger Group ( HRG), up 2.7% and Hemisphere Media Group ( HMTV), up 2.5%.
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3M Company operates as a diversified technology company worldwide. 3M has a market cap of $72.3 billion and is part of the conglomerates industry. The company has a P/E ratio of 16.5, below the S&P 500 P/E ratio of 17.7. Shares are up 12.6% year to date as of the close of trading on Wednesday. Currently there are 8 analysts that rate 3M a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates 3M as a buy. 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, solid stock price performance, good cash flow from operations and growth in earnings per share. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the negative front, SCG Financial Acquistion ( SCGQ), down 3.7%, SCG Financial Acquistion ( RMGN), down 3.7%, Global Eagle Entertainment ( ENT), down 3.2% and Global Eagle Acquisition ( EAGL), down 3.2%.

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 1 ( SPY) while those bearish on the conglomerates sector could consider ProShares Short S&P 500 ( SH).

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