With shares of 3M Company (NYSE:MMM) trading at around $94.67, is MMM an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
C = Catalyst for the Stock’s Movement
If you would like to save time, then simply look at the max chart for 3M. The answer to the question in the title will be right before your eyes. While past performance might not guarantee future success, it’s often a good indication. In the small stretches where 3M has unperformed, investors were still receiving dividend payments. Currently, 3M yields 2.50 percent.
3M has been, and will continue to be, aggressive with acquisitions. If the economy is weak, then 3M will look to acquire smaller companies at discount prices, which will set 3M up nicely for the future. As we all know, 3M hasn’t been as innovative from within as in the past, but that’s okay. It has still performed well, and most successful companies eventually end up being value plays opposed to growth plays. New CEO Inge Thulin is going to attempt to bring more innovation back to 3M, and he might have a decent chance of being successful since he’s an inside hire who likely has had some quality ideas up his sleeve for years. However, even if that’s not the case, 3M will be just fine.
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3M has a ton of exposure in Asia, especially in China. Therefore, watch China closely. Others don’t seem to be too concerned. For instance, Bank of America (NYSE:BAC) now has 3M on its Top 10 Favorite Stocks list. Whether you love or hate Bank of America, that’s quite an honor.
Now let’s take a look at some important numbers for 3M.