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 up 0.5%. By the end of trading, 3M fell $1.19 (-1.1%) to $109.03 on average volume. Throughout the day, 2,387,138 shares of 3M exchanged hands as compared to its average daily volume of 2,828,200 shares. The stock ranged in price between $108.95-$111.06 after having opened the day at $110.99 as compared to the previous trading day's close of $110.22. Other companies within the Conglomerates sector that declined today were: Rayonier ( RYN), down 2.6%, Harbinger Group ( HRG), down 2.3%, New Mountain Finance ( NMFC), down 2.2% and Leucadia National Corporation ( LUK), down 2.2%.
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3M Company operates as a diversified technology company worldwide. 3M has a market cap of $76.5 billion and is part of the conglomerates industry. The company has a P/E ratio of 17.5, below the S&P 500 P/E ratio of 17.7. Shares are up 18.7% year to date as of the close of trading on Tuesday. Currently there are 8 analysts that rate 3M a buy, 1 analyst rates it a sell, and 4 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, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, Hemisphere Media Group ( HMTV), down 13.1%, EveryWare Global ( EVRY), down 4.0%, SCG Financial Acquistion ( RMGN), down 2.4% and Dex Media ( DXM), down 2.3%.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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