Stephanie Link, Chief investment strategist, Hightower 3M Co. MMM-N BUY Jul 26, 2024

Last Friday, the CEO walked about areas that could see cost cuts and many segments that could grow faster. MMM is part of the rally broadening out of tech.

Long-term underperformer and base-building, recently broke out. Resistance levels started to fall, one by one. Then big pop on earnings. One of the top-ranked stocks on RSI in the US universe, acting extremely well. Quite well supported, even through the correction of last week.

Large industrial with a medical component, and she likes that. Good job getting back on track. Dividend cut earlier this year.

She focuses more on Canadian companies, so take a look at CCL.B. 

Wait. Don't enter this now. Wants to see more clarity. Shares are climbing after a long malaise and they have a new CEO. But hey have legacy problems with a chemical and a huge lawsuit, and the noise suppression technology lawsuit. These types of companies do turn around, but he'd rather pay more for more certainty.

It trades at only 17x PE in 3M, and it runs a diversified business.

It's a turnaround story, so he initiated a position. He is selective in industrials, because they trade at a 24x forward PE, higher than the S&P.

They're in the second inning of their turnaround, and shares remain cheap. Expectations remain low.

He bought it at 12x PE, now at 19x. The new CEO demonstrates they can change their business.

So much is about sentiment and the street expects a massive cut to earnings. We haven't seen their full-year estimates.