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Investor Insights

This summary was created by AI, based on 16 opinions in the last 12 months.

Experts have mixed opinions on 3M Co.'s stock. Some believe that the worst is behind them after settling lawsuits, cutting costs, and with the change in CEOs, while others are concerned about ongoing legal issues and the company's future outlook. There is also discussion about the potential for long-term investment but with short-term concerns. The stock is seen as offering a high dividend yield but is also facing challenges related to product liabilities and lawsuits.

Consensus
Mixed
Valuation
Fair Value
BUY ON WEAKNESS
3M Co.

Was upgraded today. Most calls remain sell. This is a turnaround story, but shares are cheap at 14x. They cut the dividend, now 2.8% but it remains higher than the industry average of 1.8%. They spun-off their healthcare business, so the company is simplifying. The current CEO as a good, massive track record from L3Harris and UTX. Will buy on any weakness.

mngmnt / diversified
PARTIAL BUY
3M Co.

It completed spinning off healthcare company Solventum today. MMM shares have been challenged by many lawsuits, including over its hearing aids, and some of its businesses have slowed. An exception is Solventum, positing positive organic growth over the past decade. Revenues were $8.2 billion in 2023, but guidance said that 2024 will be a rebuilding year. That said, it's now selling at 11x this year's earnings, cheap. Keep in mind that most spun-offs start off shaky, with those getting initial shares not wanting them. So, buy Solventum gradually over the next 6 months. As for 3M, they paid dearly to settle their lawsuits, so the worst is behind them. Also, they're cutting costs like crazy. Also, Wall Street likes the change in CEOs.

mngmnt / diversified
DON'T BUY
3M Co.

Are in good shape after the spin-off, BUT wait till they settle all of their lawsuits. Same goes with JNJ.

mngmnt / diversified
BUY ON WEAKNESS
3M Co.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

3M's 2024 outlook reflects another year of macroeconomic uncertainty, with lower top-line growth than consensus anticipated. The company's consumer outlook is cautionary, as it expects constrained spending again this year, which may be conservative. 3M's 4Q adjusted EPS of $2.42 was better than expected, supported by a lower tax rate, slightly higher sales growth and benefits from restructuring actions. Organic sales fell 1.4% with a surprise gain in Transportation and Electronics (up 2.7%), but not enough to offset declines in other segments. Adjusted operating margin expanded 180 bps to 20.9%, driven by a 380-bp jump in Transportation and Electronics. A planned first half Health Care spinoff is on track, with cash likely to be used for debt reduction and legal payments. Considering the balance sheet and free cash flow, we would not have serious concerns on the dividend, and consensus still calls for some EPS growth this year ($9.21 to $9.66). But, considering guidance, investors might just sit on the sidelines for a while, despite the low valuation (9X). With other stocks growing faster and doing better fundamentally, we would not see it as overly attractive yet. Negative momentum can continue at times. Its 52-week low is $85-ish. We would be more interested at $90.
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mngmnt / diversified
WATCH
3M Co.

They report Tuesday. They've put the lawsuits behind them. Now, they need to develop some new products that turn into blockbusters, like they used to.

mngmnt / diversified
DON'T BUY
3M Co.

Is still dealing with class-action lawsuits. Doesn't see the end of the tunnel. Is a complex problem involving many US states.

mngmnt / diversified
DON'T BUY
3M Co.

Would not recommend buying at this time. Involvement in lawsuits a concern for investors. Unsure on liabilities associated in lawsuits. Wait to see outcome. Strong R&D pipeline, so could be investment grade in the future, but not right now. Dividend yield reflecting risky nature of business. 

mngmnt / diversified
DON'T BUY
3M Co.

Has suffered several lawsuits. Are liable for billions in a major chemical lawsuit, which resulted in a severely negative quarter. Continues to suffer lawsuits. 3M is in disarray and yet is paying a large dividend (because the stock has fallen). The payout ratio is around 60% (not entirely sure), a little high and uncomfortable.

mngmnt / diversified
DON'T BUY
3M Co.

A discretionary that yields 6.34%, but shares have fallen since early 2021. Before he would buy this, but he sees a sell signal on the S&P 500 (the last time happened in March 2020). He might buy 3M with a stop, but not enthusiastic.

mngmnt / diversified
DON'T BUY
3M Co.

Long term - may be a good investment, but short term is a concern.
~6% dividend too high.
Would not recommend investing.
Legal/liability issues with product ingredients. 
Hearing loss product under investigation.


mngmnt / diversified
BUY
3M Co.

Are cleaning up their class-action lawsuits. Stock is cheap.

mngmnt / diversified
DON'T BUY
3M Co.

Troublesome. Lawsuits on carcinogens and noise protection products, a $25B hit. Struggles on margins and growth.

mngmnt / diversified
DON'T BUY
3M Co.

Look at this once they settled their ongoing lawsuits.

mngmnt / diversified
BUY
3M Co.

An interesting time to buy this, given the earplug lawsuit and this cloud should start to lift. They've paid a dividend for 100 years, raising it for 64 years, paying 5.8%. They are innovative, like robots they've sold to BMW. Dirt cheap. Buy.

mngmnt / diversified
DON'T BUY
3M Co.

Shares have climbed Friday, though have lagged recently, because of hopes that they will settle a pollution lawsuit. However, today the market read that progress negatively, and shares sank.

mngmnt / diversified
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3M Co.(MMM-N) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 5

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 9

Total Signals / Votes : 14

Stockchase rating for 3M Co. is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

3M Co.(MMM-N) Frequently Asked Questions

What is 3M Co. stock symbol?

3M Co. is a American stock, trading under the symbol MMM-N on the New York Stock Exchange (MMM). It is usually referred to as NYSE:MMM or MMM-N

Is 3M Co. a buy or a sell?

In the last year, 14 stock analysts published opinions about MMM-N. 5 analysts recommended to BUY the stock. 9 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for 3M Co..

Is 3M Co. a good investment or a top pick?

3M Co. was recommended as a Top Pick by on . Read the latest stock experts ratings for 3M Co..

Why is 3M Co. stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is 3M Co. worth watching?

14 stock analysts on Stockchase covered 3M Co. In the last year. It is a trending stock that is worth watching.

What is 3M Co. stock price?

On 2024-06-14, 3M Co. (MMM-N) stock closed at a price of $100.9.