Is 3M Stock Underperforming the S&P 500?

With a market cap of $85 billion, 3M Company (MMM) is a diversified global technology company, serving customers across the Americas, Asia Pacific, Europe, the Middle East, Africa, and beyond. It operates through three segments: Safety and Industrial; Transportation and Electronics; and Consumer, delivering solutions that range from industrial abrasives, adhesives, and personal protective equipment to electronics materials, transportation systems, and data center technologies. 

Companies valued at $10 billion or more are generally considered "large-cap" stocks, and 3M fits this criterion perfectly. The company also offers a wide portfolio of consumer products, including home cleaning supplies, office stationery, automotive care items, and health-related bandages and supports, distributed through e-commerce, retail, and direct channels.

More Top Stocks Daily: Go behind Wall Street’s hottest headlines with Barchart’s Active Investor newsletter.

 

Shares of the Saint Paul, Minnesota-based company have fallen 10.7% from its 52-week high of $177.41. Over the past three months, its shares have dipped 8.4%, a more pronounced decline than the broader S&P 500 Index’s ($SPX) marginal drop during the same period.

www.barchart.com

MMM stock is down 1% on a YTD basis, lagging behind SPX's marginal decrease. Longer term, shares of 3M have risen 3.3% over the past 52 weeks, compared to the 16.5% gain of the SPX over the same time frame.

Yet, the stock has been consistently trading above its 200-day moving average since last year. 

www.barchart.com

Shares of 3M tumbled nearly 7% on Jan. 20 as Q4 2025 EPS dropped 20% year-over-year to $1.07 and operating margin fell sharply by 510 basis points to 13%. The quarter was weighed down by significant special items, including $0.56 per share in litigation costs, $0.39 related to manufactured PFAS products, and a $0.30 per-share decline in the value of Solventum ownership, which overshadowed adjusted EPS growth of 9% to $1.83.

In comparison, MMM stock has underperformed compared to its rival, Honeywell International Inc. (HON). HON stock has increased nearly 25% YTD and 21.9% over the past 52 weeks.

Despite the stock’s underperformance, analysts remain moderately optimistic on 3M. The stock has a consensus rating of “Moderate Buy” from 16 analysts in coverage, and the mean price target of $180.33 is a premium of 13.8% to current levels.