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Headquartered in St. Paul, Minnesota, 3M Company (MMM) is a global diversified technology firm with manufacturing operations worldwide. With a market cap of $71.2 billion, it is a key player across multiple industries, delivering innovative products and solutions in sectors including healthcare, consumer goods, industrial applications, and safety.
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. 3M’s strengths lie in its brand power, diversified product portfolio, and market leadership across multiple industries, supported by its extensive patent portfolio and premium pricing.
MMM shares are trading 4.8% below their 52-week high of $134.99, which they hit on Aug. 30. MMM has gained 27.4% over the past three months, outperforming the Industrial Select Sector SPDR Fund (XLI) 4.5% rise over the same time frame.
In the long term, MMM is up 41% on a YTD basis, and the shares have returned 45.1% over the past 52 weeks. In comparison, the XLI gained 12.1% in 2024 and rallied 21% over the past year.
To confirm the bullish price trend, MMM has been mostly trading above its 50-day and 200-day moving average since early March despite some fluctuations.
Trading near its 52-week high, 3M Company is capitalizing on the expected recovery of cyclical markets through 2024 and ongoing restructuring efforts that are enhancing profit margins. Additionally, under the leadership of new CEO William Brown, there is growing optimism about the company's future direction.
3M's Q2 earnings, reported on Jul. 26, exceeded Wall Street expectations with ease. The company’s raised full-year guidance, combined with the strong earnings, propelled the stock to surge by a whopping 23%.
3M competes with industry giant Honeywell International Inc. (HON), staying competitive through its strong focus on R&D. Notably, Honeywell has lagged behind MMM and the XLI, with 9% returns over the past year and falling 4.1% on a YTD basis.
Despite its outperformance relative to XLI, analysts are cautiously bullish about MMM's prospects. The stock has a consensus rating of "Moderate Buy" from 14 analysts in coverage. The mean price target of $131.14 reflects a 2.1% premium over current price levels.
On the date of publication, Kritika Sarmah 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.
