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3M Company (MMM), headquartered in St. Paul, Minnesota, is a global leader in diversified technology and manufacturing. With a market cap of $56.66 billion, 3M plays a vital role in various industries, providing innovative products and solutions in sectors such as healthcare, consumer goods, industrial, and safety. Competing with other major conglomerates like Honeywell International Inc. (HON), 3M continues to drive technological advancements and maintain a strong market presence through its commitment to research and development.
Companies valued at $10 billion or more are generally considered "large-cap" stocks and 3M Company fits this criterion perfectly, signifying its substantial size, stability, and influence in the diversified industrial sector. The company's extensive portfolio and innovative solutions make it a trusted partner across various industries, providing essential products and services that support the efficient and reliable operation of businesses worldwide.
MMM shares are trading 3.4% below their 52-week high of $106.04, which they hit on May 20. MMM has gained 13.9% over the past three months, outperforming the Industrial Select Sector SPDR Fund (XLI) 2.1% decline over the same time frame.
In the long term, MMM is up 12.4% on a YTD basis, and the shares have returned 21.1% over the past 52 weeks. In comparison, the XLI gained 7.9% in 2024 and rallied 17.3% over the past year.
To confirm the recent bullish price trend, MMM has been trading above its 200-day and 50-day moving average since early March.
3M Company reported Q1 earnings on Apr. 30. The stock gained 4.7% on the earnings release day. The company reported net income of $928 million, translating to a profit of $1.67 per share. Adjusted for non-recurring costs, earnings were $2.39 per share, surpassing Wall Street expectations of $2.08 per share. The company posted revenue of $8 billion for the period. For the full year, 3M expects earnings to be $6.80 to $7.30 per share.
Highlighting the contrast in performance, rival HON has underperformed both MMM and XLI, gaining 2.6% on a YTD basis.
Despite its outperformance relative to XLI, analysts are cautious about MMM's prospects. The stock has a consensus rating of "Hold" from 12 analysts in coverage. The mean price target of $110.23 reflects a 7.7% premium over current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
