3M Rises 23.4% in 6 Months: Time to Buy or Hold the Stock?

Zacks11-18

3M Company’s MMM shares have gained 23.4% over the past six months, outperforming the S&P 500’s growth of 10.4% and the Zacks Diversified Operations industry’s decline of 9.4%. The diversified ...

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The diversified ...</p>\n\n<a href=\"https://finance.yahoo.com/news/3m-rises-23-4-6-151500491.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>3M Rises 23.4% in 6 Months: Time to Buy or Hold the Stock?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n3M Rises 23.4% in 6 Months: Time to Buy or Hold the Stock?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-18 23:15 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/3m-rises-23-4-6-151500491.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>3M Company’s MMM shares have gained 23.4% over the past six months, outperforming the S&P 500’s growth of 10.4% and the Zacks Diversified Operations industry’s decline of 9.4%. The diversified ...</p>\n\n<a href=\"https://finance.yahoo.com/news/3m-rises-23-4-6-151500491.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4149","symbol_name":"建筑机械与重型卡车","start_time":0,"source_url":"https://finance.yahoo.com/news/3m-rises-23-4-6-151500491.html","article_id":"2484605937","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/LuqJ.M0lv3PgCi9zLWh7.g--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/16ec952cfd7d1ba98a87b6957f1f19a2"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2484605937","pubTimestamp":1731942900,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"3M Company’s MMM shares have gained 23.4% over the past six months, outperforming the S&P 500’s growth of 10.4% and the Zacks Diversified Operations industry’s decline of 9.4%. The diversified technology company has also outperformed industry players like Honeywell International Inc. HON and Federal Signal Corporation FSS, which have returned 12% and 2.1%, respectively, over the same time frame.Closing at $129.79 in the last trading session, the stock is trading below its 52-week high of $141.34 but significantly higher than its 52-week low of $75.65. The company’s impressive performance can be largely attributed to its strong foothold and improving conditions in the transportation, industrial adhesives, roofing granules and electrical markets.3M’s trailing 12-month return on equity  is indicative of its growth potential. ROE for the trailing 12 mo","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4149":"建筑机械与重型卡车","BK4206":"工业集团企业","IE0031619046.USD":"LEGG MASON ROYCE US SMALL CAP OPPORTUNITY \"A\" (USD) INC","HON":"霍尼韦尔","IE00B7SZL793.SGD":"Legg Mason Royce - US Small Cap Opportunity A Acc SGD-H","LU0683600562.USD":"AB SELECT US EQUITY \"A\" (USD) ACC","BK4550":"红杉资本持仓","BK4588":"碎股","IE00B1BXHZ80.USD":"Legg Mason ClearBridge - US Appreciation A Acc USD","LU0787776722.HKD":"AB SELECT US EQUITY PORTFOLIO \"A\" (HKD) ACC","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","IE00B66KJ199.SGD":"LEGG MASON ROYCE US SMALL CAP OPPORTUNITY  \" A\" (SGD) ACC","FSS":"联邦信号","BK4086":"建筑产品","IE00B19Z4B17.USD":"LEGG MASON ROYCE US SMALL CAP OPPORTUNITY \"A\" (USD) ACC","LU1093756168.USD":"FRANKLIN K2 ALTERNATIVE STRATEGIES \"A\" (USD) ACC","BK4512":"苹果概念","LU1093756325.SGD":"FTIF - Franklin K2 Alt Strat Fd A (acc) SGD-H1","MMM":"3M","BK4585":"ETF&股票定投概念","ROE":"ASTORIA US QUALITY KINGS ETF","BK4534":"瑞士信贷持仓","GFF":"格里丰","BK4533":"AQR资本管理(全球第二大对冲基金)"},"translate_title":"3M 6个月内上涨23.4%：是时候买入还是持有该股票了？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ROE":1,"MMM":1,"FSS":1,"GFF":1,"HON":1},"content_text":"3M Company’s MMM shares have gained 23.4% over the past six months, outperforming the S&P 500’s growth of 10.4% and the Zacks Diversified Operations industry’s decline of 9.4%. The diversified technology company has also outperformed industry players like Honeywell International Inc. HON and Federal Signal Corporation FSS, which have returned 12% and 2.1%, respectively, over the same time frame.\nMMM Stock’s Six-Month Price Performance\nImage Source: Zacks Investment Research\nClosing at $129.79 in the last trading session, the stock is trading below its 52-week high of $141.34 but significantly higher than its 52-week low of $75.65. The company’s impressive performance can be largely attributed to its strong foothold and improving conditions in the transportation, industrial adhesives, roofing granules and electrical markets.\nFactors Favoring the Company\n3M’s third-quarter 2024 results indicated decent year-over-year growth, with adjusted revenues rising 1.5% to $6.1 billion, driven by solid momentum in the Safety and Industrial segment. Solid momentum in the industrial adhesives and tapes end markets, driven by an increase in the sales of bonding solutions for electronic devices, has been driving the segment’s performance. The segment’s organic sales improved 1% year over year in the third quarter.The company’s Transportation and Electronics segment has also been benefiting from strength in the commercial branding and transportation end markets. Solid electronics demand, backed by an increase in production volume, by electronics original equipment manufacturer (OEM) customers is proving beneficial for the segment. However, weakness in the automotive electrification market due to a decline in automotive OEM build rates remains a concern. The segment’s adjusted organic revenues grew 2% in the third quarter. Backed by strength across its businesses, the company provided a stable outlook. For 2024, it expects total adjusted organic sales to grow approximately 1% on a year-over-year basis.The company has been undertaking restructuring actions that are intended to lower operational costs and boost margins and cash flow in the long term. These include streamlining the geographic footprint, simplifying the supply chain and optimizing manufacturing roles to align with production volumes. In the third quarter, these actions, together with strong organic volume and productivity, raised 3M’s adjusted operating margin by 140 basis points year over year to 23%.3M is committed to rewarding its shareholders through dividend payments and share buybacks. In the first nine months of 2024, it paid dividends worth $1.6 billion and repurchased shares for $1.1 billion. Exiting the third quarter, the company had $3.1 billion remaining under the share repurchase program. In February 2024, it hiked its quarterly dividend by 1%.\nBetter-Than-Industry Returns of MMM\n3M’s trailing 12-month return on equity (ROE) is indicative of its growth potential. ROE for the trailing 12 months is 104.7%, much higher than the industry’s 31.2%. This reflects the company’s efficient usage of shareholder funds.\nImage Source: Zacks Investment Research\nEstimate Revision Trend\nEarnings estimates for 2024 have increased 0.7% to $7.27 per share over the past 60 days, while the same for 2025 has inched up 0.4% to $7.87. Find the latest EPS estimates and surprises on Zacks Earnings Calendar.\nImage Source: Zacks Investment Research\nA Few Near-Term Concerns Prevail\n3M has been grappling with persistent weakness in the Consumer segment due to soft consumer discretionary spending. The segment’s revenues declined 1.2% in the third quarter, following a 2.4% decrease in the previous quarter. There was particular weakness in the packaging & expression, home & auto care and consumer safety and well-being businesses. It expects consumer retail discretionary spending on hardline goods to remain muted for the rest of the year, which is likely to hurt its overall performance.MMM’s high debt level remains a concern for its profitability. Exiting third-quarter 2024, the company’s long-term debt was high at $11.3 billion. Its short-term borrowings and current portion of long-term debt totaled $1.9 billion. Also, interest expenses in the first nine months of 2024 were $939 million, up 64% on a year-over-year basis. It’s worth noting that 3M’s long-term debt-to-capital ratio is 70.7%, much higher than the industry’s 26.5%.The company has also been subject to several litigations, including earplug lawsuits. It has committed substantial funds to resolve these disputes as ongoing litigation might lead to additional expenses.\nStretched Valuation Remains an Overhang for 3M\nIn terms of valuation, MMM’s forward 12-month price-to-earnings (P/E) is 16.64X, a premium to its industry average of 15.05X. This indicates that investors will be paying a higher price than the company's expected earnings growth compared with its peers. Also, the stock is overvalued compared with its peer, Griffon Corporation GFF, which is trading at 12.99X.\nImage Source: Zacks Investment Research\nSumming Up\nDespite 3M’s several upsides and robust share price returns, the near-term challenges, such as weakness in the retail market, high debt level and premium valuation, are limiting this Zacks Rank #3 (Hold) company’s prospects. While current shareholders should hold their positions, new investors should wait for the stock to retract some of its recent gains and provide a better entry point.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nHoneywell International Inc. (HON) : Free Stock Analysis Report\n3M Company (MMM) : Free Stock Analysis Report\nFederal Signal Corporation (FSS) : Free Stock Analysis Report\nGriffon Corporation (GFF) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2484605937"}