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Headquartered in St. Paul, Minnesota, 3M Company (MMM) is a diversified global corporation valued at $69.11 billion by market cap. 3M develops a wide range of products across healthcare, consumer goods, and industrial manufacturing industries. The company's pioneering solutions, including adhesives, abrasives, and advanced materials, have transformed how businesses operate and consumers engage with everyday products.
Shares of the MMM significantly outperformed the broader market over the past year. The stock has gained 42% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 17%. In 2024 alone, the stock has gained 37.1%, compared to SPX's 9.8% gains on a YTD basis.
Narrowing the focus, MMM’s outperformance is also evident compared to the Industrial Select Sector SPDR Fund (XLI). The exchange-traded fund has gained 12.8% over this period. Also, the stock's YTD gains outshine the ETF’s 7.1% returns over the same time frame.
On Jul. 26, 3M reported its Q2 earnings, easily beating Wall Street expectations. This, along with the company’s full-year guidance increase, led to the stock surging 23%.
For the current fiscal year, ending in December, analysts expect MMM’s EPS to decline 22% to $7.21 on a diluted basis. The company's earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 13 analysts covering MMM stock, the consensus rating is a “Moderate Buy.” That’s based on six “Strong Buys” ratings, five “Holds,” and two “Strong Sells.”
This configuration is more bullish than three months ago when the overall rating was “Hold.”
On Aug. 2, Barclays analyst Julian Mitchell maintained a “Buy” rating on 3M with a price target of $145, implying a potential upside of 16.1% from current levels.
The mean price target of $129 represents a 3.3% premium to MMM’s current price levels. The Street-high price target of $150 suggests an upside potential of 20.1%.
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.
