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Saint Paul, Minnesota-based 3M Company (MMM) provides diversified technology services, conducting operations in electronics, telecommunications, industrial, consumer and office, health care, safety, and other markets. Valued at $70.7 billion by market cap, the company businesses share technologies, manufacturing operations, marketing channels, and other resources.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and MMM perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the conglomerates industry. 3M's century-long reputation for innovation and reliability, backed by a diverse product portfolio and strong patents and trademarks, has secured its leading position in global markets.
Despite its notable strength, 3M slipped 8.2% from its 52-week high of $141.34, achieved on Oct. 22. Over the past three months, MMM stock declined marginally, underperforming the S&P 500 Index’s ($SPX) 9.5% gains during the same time frame.
In the longer term, shares of MMM rose 42.5% on a YTD basis and climbed 51% over the past 52 weeks, outperforming SPX’s YTD gains of 27.6% and 31.6% returns over the last year.
To confirm the bullish trend, MMM has traded above its 200-day moving average since mid-March. However, it has traded below its 50-day moving average since late October, with some fluctuations.
On Oct. 22, MMM shares closed down more than 2% after reporting its Q3 results. Its revenue of $6.3 billion, surpasses analyst estimates of $6.1 billion. The company’s adjusted EPS was $1.98, exceeding analyst estimates of $1.90.
In the competitive arena of conglomerates, Honeywell International Inc (HON) has taken the lead over 3M, showing resilience with a 9.2% uptick on a YTD basis and 14.3% gains over the past 52 weeks.
Wall Street analysts are moderately bullish on MMM’s prospects. The stock has a consensus “Moderate Buy” rating from the 16 analysts covering it, and the mean price target of $150.75 suggests a potential upside of 16.2% from current price levels.
