3M stock: buy or sell?

MMM stock price: $166.83 -0.14% At close on September 20th, 2019

Updated on:
September 20th, 2019

2

3M ended today at $166.83 and stayed constant a tight -0.14%. With Friday it's been 5 red days in a row.

3M Company operates as a diversified technology company worldwide. The company's Industrial segment offers tapes; coated, non-woven, and bonded abrasives; adhesives; ceramics; sealants; specialty materials; purification products; closure systems for personal hygiene products; acoustic systems products; automotive components; and abrasion-resistant films, and paint finishing and detailing products.

Should I buy 3M stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Having a trading strategy helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with 3M stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is 3M stock a buy?

Financial institutions and banks publish stock ratings everyday. At Stocks2.com, we detected 15 ratings published for MMM stock in the last month.

The general sentiment of these ratings is bearish for MMM stock, with 5 negative ratings.
Is MMM a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-6JPMorgan Chase & Co.n/aUnderweight
2019-7-29Morgan Stanleyn/aEqual Weight
2019-7-26Credit Suisse Groupn/aOutperform
2019-7-26Credit Suisse Groupn/aOutperform
2019-7-12UBS GroupNeutralNeutral
2019-6-6Barclaysn/aSell
2019-6-3Citigroupn/aBuy
2019-6-27Bank of American/aNeutral
2019-5-24Morgan Stanleyn/aEqual Weight
2019-5-17JPMorgan Chase & Co.n/aUnderweight
2019-5-17JPMorgan Chase & Co.n/aUnderweight
2019-4-3BarclaysUnderweightUnderweight
2019-4-26Morgan Stanleyn/aHold
2019-4-26Deutsche BankHoldHold
2019-4-26Deutsche BankHoldHold

3M stock analysis

Daily outlook

3M ended today at $166.83 and stayed steady a tight -0.14%.

3M stayed steady a tight -0.14% and closed at $166.83. MMM is retaking the upward trend marking a new rising bottom heading to break out over $172.48.

MMM stock chart (daily)

Weekly outlook

3M ended this week at $166.83 and slipped a fateful -2.69%.

3M is in a glaring downtrend, marking consecutive declining peaks and bottoms. Now is trading in between the - range. If the support holds the price, this might mark a double bottom configuration and create a flat-base to reverse this downtrend. Since late April, when MMM stock price broke down the 40-weeks moving avarage line, it slid $-48.23 per share (-22.43%). Stocks below the 200 days moving average line are usually not recommended for average traders.

MMM stock chart (weekly)

3M stock price history

3M stock historical price chart

MMM stock reached 52-week highs on April at $215.91, and all-time highs 2018-01-26 with a price of 246.93.

3M stock price target is $175.10

Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. You should not follow the analysts' MMM stock price predictions in the hope that they will be met as they may be wrong and not met. We have 15 price predictions for MMM stock released in the last month:
MMM stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-6JPMorgan Chase & Co.Lowers Target$143.00$140.00-2.1%
2019-7-29Morgan StanleyRaises Target$172.00$177.002.9%
2019-7-26Credit Suisse GroupReiterates$180.00$194.007.8%
2019-7-26Credit Suisse GroupRaises Target$180.00$194.007.8%
2019-7-12UBS GroupLowers Target$201.00$182.00-9.5%
2019-6-6BarclaysReiteratesn/a$162.00-
2019-6-3CitigroupReiterates$221.00$197.00-10.9%
2019-6-27Bank of AmericaLowers Target$193.00$185.00-4.1%
2019-5-24Morgan StanleyLowers Target$184.00$172.00-6.5%
2019-5-17JPMorgan Chase & Co.Reiterates$154.00$143.00-7.1%
2019-5-17JPMorgan Chase & Co.Lowers Target$154.00$143.00-7.1%
2019-4-3BarclaysLowers Target$189.00$188.00-0.5%
2019-4-26Morgan StanleySet Price Targetn/a$184.00-
2019-4-26Deutsche BankSet Price Target$188.00$183.00-2.7%
2019-4-26Deutsche BankLowers Target$188.00$183.00-2.7%
(in average)$180.50$175.10-3.0%
The price target for 3M stock is $175.10, moving in a range between $197.00 and $140.00. In average, analysts' outlook on MMM price forecast is negative, reducing the prediction by a -3.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since April, when 3M posted its last earnings report, it . Unfortunately, reported EPS is not yet available in our database.
MMM earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a2.03n/a
2017-Q32017-10-242.212.335.4%
2017-Q42018-01-252.02n/an/a
2018-Q12018-04-242.52.50.0%
2018-Q22018-07-242.592.590.0%
2018-Q32018-10-232.72.58-4.4%
2018-Q42019-01-292.272.311.8%
2019-Q12019-04-252.57n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, 3M annual turnover raised a good 3.50% to $32,765.00 million USD from $31,657.00 marked in 2017. Nonetheless, its income margin (compared to sales) stayed constant to 16.33%, that is $5,349.00 million.

To have an up to date view of the financial situation of 3M, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual 3M TTM sales up to March 2019 were $32,350.00 and income was $5,638.00 million dollars. When comparing this TTM figures with the last reported annuality, we can review 3M business evolution since December 2018: Annual sales up to March, compared to lastest yearly report, decreased an ugly -1.27%. Regarding profit margin, 3M grew 1.10% to 16.33%

MMM annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$30,870 M-$4,660 M15.1%-
2014$31,821 M3.08%$4,956 M15.6%6.35%
2015$30,274 M-4.86%$4,833 M16.0%-2.48%
2016$30,109 M-0.55%$5,050 M16.8%4.49%
2017$31,657 M5.14%$4,858 M15.3%-3.80%
2018$32,765 M3.50%$5,349 M16.3%10.11%
TTM $32,350 M-1.27%$5,638 M17.4%5.40%

Quarterly financial results

3M reported $7,863.00 million in revenues for 2019-Q1, a -1.03% less compared to previous quarter. Reported quarter earnings marked $891.00 million with a profit margin of 11.33%. Profit margin dropped a -5.62% compared to previous quarter when profit margin was 16.95%. When comparing revenues to same quarter last year, 3M sales marked a fateful drop down and slipped a -5.01%. Looking back to recent quarterly results, 3M posted 3 positive quarters in a row.
MMM quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$7,810 M-$1,580 M20.2%-
2017-Q3$8,170 M4.61%$1,430 M17.5%-9.49%
2017-Q4$7,990 M-2.20%$523 M6.5%-63.43%
2018-Q1$8,278 M3.60%$602 M7.3%15.11%
2018-Q2$8,390 M1.35%$1,857 M22.1%208.47%
2018-Q3$8,152 M-2.84%$1,543 M18.9%-16.91%
2018-Q4$7,945 M-2.54%$1,347 M17.0%-12.70%
2019-Q1$7,863 M-1.03%$891 M11.3%-33.85%

3M ownership

When you are planning to invest in a company, it's worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For 3M, 7.74% of all outstanding shares are owned by its staff.

In case of 3M stock, 10.48% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for MMM stock account 0.00%, no big difference from last month.

For a better understanding, the next table shows ownership data compared to other related stocks:

MMMALGNAMZNDHRGE
Market cap$96.0 B$14.4 B$901.0 B$104.6 B$82.2 B
Total shares575.3 M79.9 M494.7 M717.4 M8,730.0 M
Float shares574.4 M73.3 M416.2 M636.3 M8,710.0 M
  - Institutional holdings (%)10.5%84.4%57.1%79.9%58.6%
  - Insider holdings (%)7.7%8.9%16.1%11.4%0.2%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

3M summary

Friday, September 20th, 2019
Open$167.43
Close$166.83
Day range$166.50 - $169.14
Previous close$167.07
Session gain-0.14%
Average true range$3.34
50d mov avg$166.21
100d mov avg$167.47
200d mov avg$182.61
Daily patternlb02a
Weekly pattern lt02a

3M performance

To measure stock performance is always good to benchmark with competitors or related stocks. In the following table, we compare 3M performance to Align Technology, Amazon.com, Danaher, General Electric, Honeywell International, HP, Illinois Tool Works, Johnson Controls International, and DENTSPLY SIRONA:
Stock3m6m12m
MMM3M-2.88%-17.03%-20.43%
ALGNAlign Technology-36.39%-33.11%-52.64%
AMZNAmazon.com-4.70%3.21%-4.88%
DHRDanaher1.53%12.67%35.61%
GEGeneral Electric-9.94%-5.42%-19.14%
HONHoneywell Interna...-3.86%8.07%6.15%
HPQHP-8.67%-1.42%-25.03%
ITWIllinois Tool Wor...3.28%11.56%8.06%
JCIJohnson Controls ...10.46%23.37%22.45%
JNJ-7.74%-3.60%-6.42%
XRAYDENTSPLY SIRONA-15.12%1.67%29.78%

3M competitors

We selected a few stocks to conform a list of 3M competitors to check if you are interested in investing in MMM:

Latest 3M stock news