3M Stock Buy Hold or Sell Recommendation

MMM
 Stock
  

USD 112.14  0.86  0.76%   

Considering the 90-day investment horizon and your typical level of risk aversion, our recommendation regarding 3M Company is 'Hold'. Macroaxis provides 3M buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding 3M positions. The advice algorithm takes into account all of 3M's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from 3M's buy-and-hold perspective. Additionally, see 3M Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as 3M and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards 3M Company.

Execute 3M Buy or Sell Advice

The 3M recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on 3M Company. Macroaxis does not own or have any residual interests in 3M Company or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute 3M's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell 3MBuy 3M
Hold

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Reporting Quality (M-Score)

Details
For the selected time horizon 3M Company has a Risk Adjusted Performance of (0.11), Jensen Alpha of (0.12), Total Risk Alpha of (0.07) and Treynor Ratio of (0.18)
Macroaxis provides trade advice on 3M Company to complement and cross-verify current analyst consensus on 3M. Our advice engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure 3M Company is not overpriced, please confirm all 3M Company fundamentals, including its shares owned by insiders, cash and equivalents, number of employees, as well as the relationship between the price to sales and book value per share . Given that 3M Company has a price to earning of 11.56 X, we suggest you to validate 3M market performance and probability of bankruptcy to ensure the company can sustain itself this quarter and beyond given your latest risk tolerance and investing horizon.

3M Trading Alerts and Improvement Suggestions

3M Company generated a negative expected return over the last 90 days
About 68.0% of the company shares are owned by institutional investors
On 12th of September 2022 3M paid $ 1.49 per share dividend to its current shareholders
Latest headline from www.nasdaq.com: Key Reasons to Hold on to 3M Stock in Your Portfolio - Nasdaq

3M current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. 3M analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. 3M analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price146.02
Target Median Price145.00
Target High Price210.00
Recommendation Mean3.40
Number Of Analyst Opinions18
Target Low Price118.00
Average Consensus Sell
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

3M Returns Distribution Density

The distribution of 3M's historical returns is an attempt to chart the uncertainty of 3M's future price movements. The chart of the probability distribution of 3M stock daily returns describes the distribution of returns around its average expected value. We use 3M Company price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of 3M returns is essential to provide solid investment advice for 3M.
Mean Return-0.19Value At Risk-3.04
Potential Upside3.21Standard Deviation2.00
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of 3M historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

3M Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to 3M or Industrials sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that 3M's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a 3M stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.12
β
Beta against DOW1.10
σ
Overall volatility
1.99
Ir
Information ratio -0.06

3M Volatility Alert

3M Company exhibits very low volatility with skewness of -1.23 and kurtosis of 6.85. However, we advise investors to further study 3M Company technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure 3M's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact 3M's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

3M Implied Volatility

3M's implied volatility exposes the market's sentiment of 3M Company stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if 3M's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that 3M stock will not fluctuate a lot when 3M's options are near their expiration.

3M Fundamentals Vs Peers

Comparing 3M's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze 3M's direct or indirect competition across all of the common fundamentals between 3M and the related equities. This way, we can detect undervalued stocks with similar characteristics as 3M or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of 3M's fundamental indicators could also be used in its relative valuation, which is a method of valuing 3M by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare 3M to competition
Fundamentals3MPeer Average
Return On Equity29.38 %(0.31) %
Return On Asset8.93 %(0.14) %
Profit Margin11.83 %(1.27) %
Operating Margin24.56 %(5.51) %
Current Valuation95.88 B16.62 B
Shares Outstanding576.25 M571.82 M
Shares Owned by Insiders0.09 %10.09 %
Shares Owned by Institutions67.58 %39.21 %
Number of Shares Shorted7.77 M4.71 M
Price to Earning11.56 X28.72 X
Price to Book4.76 X9.51 X
Price to Sales1.86 X11.42 X
Revenue35.09 B9.43 B
Gross Profit16.58 B27.38 B
EBITDA8.62 B3.9 B
Net Income4.15 B570.98 M
Cash and Equivalents2.98 B2.7 B
Cash per Share5.24 X5.01 X
Total Debt17.2 B5.32 B
Debt to Equity1.24 %48.70 %
Current Ratio1.47 X2.16 X
Book Value Per Share23.74 X1.93 K
Cash Flow from Operations6.02 B971.22 M
Short Ratio2.44 X4.00 X
Earnings Per Share9.77 X3.12 X
Price to Earnings To Growth33.70 X4.89 X
Number of Employees95 K18.84 K
Beta0.95-0.15
Market Capitalization65.11 B19.03 B
Total Asset32.72 B29.47 B
Retained Earnings41.73 B9.33 B
Working Capital3.87 B1.48 B
Current Asset10.99 B9.34 B
   Disposition of tradable shares by Eric Hammes of 3M subject to Rule 16b-3 [view details]

3M Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as 3M . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About 3M Buy or Sell Advice

When is the right time to buy or sell 3M Company? Buying financial instruments such as 3M Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having 3M in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Plastics Thematic Idea Now

Plastics
Plastics Theme
Companies manufacturing rubber and plastics accessories. The Plastics theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Plastics Theme or any other thematic opportunities.
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Additionally, see 3M Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try Money Managers module to screen money managers from public funds and ETFs managed around the world.

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Is 3M's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of 3M. If investors know 3M will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about 3M listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of 3M Company is measured differently than its book value, which is the value of 3M that is recorded on the company's balance sheet. Investors also form their own opinion of 3M's value that differs from its market value or its book value, called intrinsic value, which is 3M's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because 3M's market value can be influenced by many factors that don't directly affect 3M's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between 3M's value and its price as these two are different measures arrived at by different means. Investors typically determine 3M value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, 3M's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.