What happened to 3M stock in February?
The stock of 3M ( MMM 0.19% ) tumbled 10.5% in the month of February, according to data provided by S&P Global Market Intelligence. With shares of the industrial conglomerate losing another 3% so far in March, 3M stock is now barely 4% away from its 52-week lows as of noon Tuesday.
Is 3M’s stock too attractive to ignore?
3M Company’s stock price has declined ~16% since the beginning of this year. While there are some near-term headwinds, the stock has become too attractive to ignore trading at ~14.5x forward P/E with a ~3.96% dividend yield.
Is 3m a good buy at current levels?
3M Company’s stock price has declined ~16% since the beginning of this year. While there are some near-term headwinds, the stock has become too attractive to ignore trading at ~14.5x forward P/E with a ~3.96% dividend yield. I believe the stock is a good buy at the current levels for long-term investors.
Why did 3M underperform this year?
There are several reasons behind 3M Company's underperformance this year. The biggest one was the concern about the impact of N95 mask sales declining. Prior to the pandemic, the company's disposable respirator business had sales of ~$600 mn. This increased to ~$1.4 bn in FY2020 and added another ~$100 mn to reach ~$1.5 bn in FY2021.
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Why is 3M stock so low?
The market dumped the stock as it feared how high 3M's litigation risks could eventually be given the roughly 300,000 lawsuits against it involving just the earplugs. 3M has several other lawsuits, including allegations of contaminating drinking water.
Is 3M stock a good buy now?
MMM has a C grade for Value, which is in sync with its 5.20x forward P/B, which is 105.5% higher than the 2.53x industry average. MMM is ranked #48 out of 78 stocks in the B-rated Industrial - Machinery industry. Click here to access MMM's Growth, Momentum, Stability, Sentiment, and quality ratings.
Is 3M a good stock to buy 2022?
3M's current payout ratio is 58%. This means it paid out 58% of its trailing 12-month EPS as dividend. MMM is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2022 is $10.26 per share, which represents a year-over-year growth rate of 1.38%.
Will 3M stock go up?
Stock Price Forecast The 17 analysts offering 12-month price forecasts for 3M Co have a median target of 156.00, with a high estimate of 194.00 and a low estimate of 118.00. The median estimate represents a +19.69% increase from the last price of 130.34.
Is 3M a buy sell or hold?
3M has received a consensus rating of Hold. The company's average rating score is 1.73, and is based on 1 buy rating, 9 hold ratings, and 5 sell ratings.
Is MMM a long term investment?
3M long-term investments for the quarter ending March 31, 2022 were $M, a NAN% increase year-over-year. 3M long-term investments for 2021 were $0B, a NAN% decline from 2020....Compare MMM With Other Stocks.3M Annual Long-Term Investments (Millions of US $)2020$2019$2018$2017$9 more rows
Will 3M recover?
Is 3M Stock Expected To Rebound? While there are many near-term headwinds for the stock, I believe the long-term prospects of the company remain attractive. Its end markets are recovering and once we are past the tough comparisons for the first half of this year, its growth trajectory will improve.
Is 3M a buy Zacks?
3M Company - Buy Zacks' proprietary data indicates that 3M Company is currently rated as a Zacks Rank 2 and we are expecting an above average return from the MMM shares relative to the market in the next few months.
How often is 3M dividend?
There are typically 4 dividends per year (excluding specials), and the dividend cover is approximately 1.7. Our premium tools have predicted 3M Co.
Sales Details
Margin Profile
In the quarter under review, 3M’s net sales were $8,950 million, reflecting growth of 24.7% from the year-ago quarter. The company’s net sales also surpassed the Zacks Consensus Estimate of $8,539 million. Results benefited from 21.4% year-over-year increase in organic sales and 4% gain from movements in foreign currencies.
Balance Sheet and Cash Flow
In the quarter under review, 3M’s cost of sales increased 24% year over year to $4,719 million. It represented 52.7% of net sales compared with 53% in the year-ago quarter. Selling, general and administrative expenses grew 9.5% to $1,746 million. It represented 19.5% of net sales versus 22.2% in the year-ago quarter.
Outlook
Exiting the second quarter, 3M had cash and cash equivalents of $4,695 million, reflecting increase from $4,636 million at the end of the last reported quarter.
3M stock sinks toward longest losing streak in nearly 4 years
For 2021, 3M updated its projections. Adjusted earnings are expected to be $9.70-$10.10 per share. Sales are predicted to increase 7-10% year over year, with organic sales growth of 6-9%. The company also anticipates cash flow of $7.1-$7.7 billion from operating activities and capital expenditure of $1.8-$2.0 billion.
Analysts Are Downgrading These 10 Stocks
Shares of 3M Co. fell 0.8% in midday trading Wednesday, to put them in danger of suffering the longest losing streak in nearly four years, and on track for a 21-month closing low.
These 3 Stocks Just Declared Dividend Raises
In this article, we discuss the 10 stocks that analysts are downgrading. If you want to skip our detailed analysis of these stocks, go directly to Analysts Are Downgrading These 5 Stocks. In late January, the United States Department of Commerce released Gross Domestic Product (GDP) numbers for the fourth quarter of 2021, reporting a […]
What is 3M's EPS for 2021?
Big names in the food and beverage, industrial, and pharmaceutical sectors are lifting their payouts.
Did 3M cover up design defects?
This can be attributed to higher revenues and improved margins, driven by a y-o-y decline in both SG&A and R&D expenses. However, 3M will likely see margin pressure in Q1, owing to the restructuring initiatives, including certain divestitures, the company has undertaken in the second half of 2020. For the full-year 2021, we expect the adjusted EPS to be $9.61 compared to $8.74 in 2020.
NYSE: MMM
Last week, 3M won a court case in which it was accused of covering up design defects in earplugs used by the military. While the company continues to maintain that the earplugs are safe and effective, there are over 200,000 claims against the company, with another trial starting today.
A look at the investment case for the industrial giant in 2022
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Results were better than expected
Just as a good tv series always leaves you with a cliffhanger, 3M ( MMM 4.74% ) earnings report left investors wondering just where the company might be heading in 2022. Management elected to defer giving full-year results until its strategic update due on February 14th.
NYSE: MMM
Starting with the positives. The headline results were better than management had previously guided toward:
Three positives for 2022
Full-year organic sales growth came in at 8.8% compared to the guidance range of 8% to 9% given in October, and after management told investors in early December that sales growth for the fourth quarter would come in toward the low end of implied guidance.
What management didn't tell investors
There are some potential positives for investors to look forward to in 2022.
3M Stock, buy or sell?
Turning to the less positive news, 3M is highly likely to face some revenue headwinds from declining respirator sales in 2022. Patolawala said the business had sales of $600 million in 2019, $1.4 billion in 2020, and $1.5 billion in 2021. For reference, overall company sales were $35.3 billion in 2021.
Introduction
On balance, I'd rather be a buyer than a seller, but there's no need to take a position either way. 3M stock is a good option for dividend-seeking investors, and as discussed above, some of its key end markets look likely to recover in 2022. On the other hand, the company is struggling to offset raw material cost increases and grow margins.
The Price I'll Start Buying
On January 30th, I published an article titled "How far could 3M fall?". Since that time, I've published over 20 articles examining how far other large-cap stocks in the industrial sector and the service sector could fall if there was a bear market or a recession.
Current Owners
As part of my analysis in January, I noted that the number of significant sell-offs 3M stock had experienced over the past five decades really surprised me. In fact, 3M has had fewer deep sell-offs than any of the 26 stocks I've covered in the "How far could they fall?" series of articles this year.
Potential Buyers
If I was a current owner of 3M and didn't need access to the funds invested in the stock for the next five years, I would probably hold on in order to see if this is a premature prediction of a market downturn. I've seen this a lot with cyclical stocks.
Investors Who Rotated Into JNJ
I'm in this category, and since I think there are two equally likely downside scenarios - one that includes a bear market without a recession and one that includes a bear market with a recession - I'm going to have two equally weighted entry points for the stock.
Conclusion
I think if I were a JNJ holder, I would wait to get closer to that 30% spread between the two stocks I originally thought could happen, and I probably wouldn't even get interested in rotating back into 3M until I saw a 20% spread open up between the two stocks.
