3M Stock Alpha and Beta Analysis

MMM
 Stock
  

USD 125.97  0.16  0.13%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as 3M Company. It also helps investors analyze the systematic and unsystematic risks associated with investing in 3M over a specified time horizon. Remember, high 3M's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation.
Additionally, see 3M Backtesting, 3M Valuation, 3M Correlation, 3M Hype Analysis, 3M Volatility, 3M History and analyze 3M Performance.
  
Please note that although 3M alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., DOW index.) So in this particular case, 3M did 0.09  worse than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of 3M Company stock's relative risk over its benchmark. 3M Company has a beta of 0.92  . Let's try to break down what 3M's beta means in this case. 3M returns are very sensitive to returns on the market. As the market goes up or down, 3M is expected to follow.
3M Tangible Asset Value is relatively stable at the moment as compared to the past year. The company's current Tangible Asset Value is estimated at 28.9 Billion.
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.

Enterprise Value

123.17 Billion

3M Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. 3M market risk premium is the additional return an investor will receive from holding 3M long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in 3M. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate 3M's performance over market.
α-0.09   β0.92
90 days against DJI

3M expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of 3M's Buy-and-hold return. Our buy-and-hold chart shows how 3M performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

3M Market Price Analysis

Market price analysis indicators help investors to evaluate how 3M stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading 3M shares will generate the highest return on investment. By understating and applying 3M stock market price indicators, traders can identify 3M position entry and exit signals to maximize returns.

3M Return and Market Media

The median price of 3M for the period between Sun, Dec 5, 2021 and Wed, Nov 30, 2022 is 142.6 with a coefficient of variation of 12.9. The daily time series for the period is distributed with a sample standard deviation of 18.23, arithmetic mean of 141.36, and mean deviation of 14.5. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
       Timeline  
1
Financial Statements11/23/2021
2
3M exotic insider transaction detected11/30/2021
3
Financial Statements12/14/2021
4
Financial Statements12/16/2021
5
EPS Estimate12/31/2021
6
Sale by Denise Rutherford of 152 shares of 3M01/05/2022
7
EPS Reported01/25/2022
8
Unclassified Event01/31/2022
9
Exercise or conversion by Rhodes Kevin H of 167 shares of 3M...02/07/2022
10
Acquisition by Rhodes Kevin H of 8313 shares of 3M subject t...02/09/2022
11
Financial Statements02/11/2022
12
Financial Statements02/14/2022
13
3M exotic insider transaction detected02/17/2022
14
Payment of 219 shares by Rhodes Kevin H of 3M subject to Rul...02/22/2022
15
3M exotic insider transaction detected03/07/2022
16
Financial Statements03/30/2022
17
EPS Estimate03/31/2022
18
EPS Reported04/26/2022
19
Exercise or conversion by Michael Roman of 10610 shares of 3...05/04/2022
20
3M exotic insider transaction detected05/11/2022
21
Filing05/12/2022
22
Exercise or conversion by Mojdeh Poul of 1634 shares of 3M s...05/17/2022
23
Filing05/24/2022
24
Other06/10/2022
25
Is 3M India Limiteds Recent Stock Performance Influenced By ...06/27/2022
26
EPS Estimate06/30/2022
27
Financial Statements07/06/2022
28
EPS Reported07/26/2022
29
3M exotic insider transaction detected07/29/2022
30
Exercise or conversion by Theresa Reinseth of 795 shares of ...08/02/2022
31
Financial Statements08/04/2022
32
Exercise or conversion by Zoe Dickson of 2265 shares of 3M s...08/05/2022
33
Exercise or conversion by John Banovetz of 3145 shares of 3M...08/11/2022
34
Financial Statements08/12/2022
35
Financial Statements08/29/2022
36
Unclassified Event08/30/2022
37
Financial Statements09/01/2022
38
U.S. stocks lower at close of trade Dow Jones Industrial Ave...09/02/2022
39
Disposition of 700 shares by Eric Hammes of 3M subject to Ru...09/06/2022
40
The Zacks Analyst Blog Highlights T-Mobile US, NextEra Energ...09/09/2022
41
1 Simple Reason Not to Sell 3M Stock - The Motley Fool09/15/2022
42
EPS Estimate09/30/2022
43
Exercise or conversion by Kevin Rhodes of 273 shares of 3M s...10/06/2022
44
Sale by John Banovetz of tradable shares of 3M10/07/2022
45
3M rating kept at Underperform by Bank of America after late...10/10/2022
46
U.S. stocks higher at close of trade Dow Jones Industrial Av...10/17/2022
47
EPS Reported10/25/2022
48
3M, US Environmental Protection Agency Reach Agreement for C...11/03/2022

About 3M Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including 3M or other stocks. Alpha measures the amount that position in 3M Company has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2019 2020 2021 2022 (projected)
Long Term Debt to Equity1.751.411.070.92
Interest Coverage16.4713.5415.9516.37

3M Upcoming Company Events

As portrayed in its financial statements, the presentation of 3M's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, 3M's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of 3M's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of 3M. Please utilize our Beneish M Score to check the likelihood of 3M's management manipulating its earnings.
Upcoming Quarterly Report25th of January 2022
Next Financial Report26th of April 2022
Next Fiscal Quarter End31st of December 2021
Next Fiscal Year End25th of January 2022
Last Quarter Report30th of September 2021
Last Financial Announcement31st of December 2020

Build Portfolio with 3M

Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.

Build Diversified Portfolios

Align your risk with return expectations

Fix your portfolio
By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Additionally, see 3M Backtesting, 3M Valuation, 3M Correlation, 3M Hype Analysis, 3M Volatility, 3M History and analyze 3M Performance. You can also try Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.

Complementary Tools for analysis

When running 3M Company price analysis, check to measure 3M's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy 3M is operating at the current time. Most of 3M's value examination focuses on studying past and present price action to predict the probability of 3M's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move 3M's price. Additionally, you may evaluate how the addition of 3M to your portfolios can decrease your overall portfolio volatility.
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3M technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of 3M technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of 3M trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...