3M Stock Buy Hold or Sell Recommendation

MMM
 Stock
  

USD 147.44  2.82  1.88%   

Considering the 90-day investment horizon and your complete indifference towards market risk, our recommendation regarding 3M Company is 'Strong Buy'. 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
Strong Buy

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

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Financial Strenth (F Score)

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Financial Leverage

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Reporting Quality (M-Score)

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For the selected time horizon 3M Company has a Risk Adjusted Performance of 0.0292, Jensen Alpha of (0.05), Total Risk Alpha of (0.10), Sortino Ratio of (0.06) and Treynor Ratio of 0.0334
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 14.98 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 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 Return0.0324Value At Risk-2.13
Potential Upside2.50Standard Deviation1.45
   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 Cash Flow Accounts

201720182019202020212022 (projected)
Depreciation Amortization and Accretion1.54 B1.49 B1.59 B1.91 B1.92 B1.88 B
Net Cash Flow or Change in Cash and Cash Equivalents655 M(200 M)(500 M)2.28 B(70 M)(71.84 M)
Net Cash Flow Business Acquisitions and Disposals(958 M)859 M(4.75 B)551 M495.9 M535.05 M
Issuance Purchase of Equity Shares(1.33 B)(4.38 B)(860 M)61 M(1.56 B)(1.68 B)
Issuance Repayment of Debt Securities1.6 B933 M3.25 B(1.88 B)(1.15 B)(1.18 B)
Payment of Dividends and Other Cash Distributions(2.8 B)(3.19 B)(3.32 B)(3.39 B)(3.42 B)(3.69 B)
Net Cash Flow from Financing(2.65 B)(6.7 B)(1.12 B)(5.3 B)(6.14 B)(6.63 B)
Net Cash Flow from Investing(3.09 B)222 M(6.44 B)(580 M)(1.32 B)(1.42 B)
Net Cash Flow Investment Acquisitions and Disposals(798 M)669 M(192 M)232 M204 M195.63 M
Net Cash Flow from Operations6.24 B6.44 B7.07 B8.11 B7.45 B7.68 B
Effect of Exchange Rate Changes on Cash156 M(160 M)(2 M)48 M(62 M)(63.63 M)
Share Based Compensation324 M302 M278 M262 M274 M274.84 M

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
-0.05
β
Beta against DOW0.67
σ
Overall volatility
1.46
Ir
Information ratio -0.06

3M Volatility Alert

3M Company has relatively low volatility with skewness of 0.32 and kurtosis of 2.39. However, we advise all investors to independently investigate 3M Company to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. 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" href="/stock-options/MMM/3M-Company">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" href="/stock-options/MMM/3M-Company">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" href="/stock-options/MMM/3M-Company">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 Earning14.98 X28.72 X
Price to Book6.03 X9.51 X
Price to Sales2.49 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 Share25.09 X1.93 K
Cash Flow from Operations6.02 B971.22 M
Short Ratio2.44 X4.00 X
Earnings Per Share10.11 X3.12 X
Price to Earnings To Growth33.70 X4.89 X
Number of Employees95 K18.84 K
Beta0.95-0.15
Market Capitalization87.26 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
   Exercise or conversion by John Banovetz of 3145 shares 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.
Accumulation Distribution45121.93
Daily Balance Of Power(1.74)
Rate Of Daily Change0.98
Day Median Price147.88
Day Typical Price147.73
Price Action Indicator(1.85)

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.
 2019 2020 2021 2022 (projected)
Receivables4.79 B4.71 B4.66 B4.32 B
Inventories4.13 B4.24 B4.99 B4.26 B

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 Military Industrial Thematic Idea Now

Military Industrial
Military Industrial Theme
A collection of large United States defense contractors including companies involved in production or distribution of aircraft, ships, vehicles, weaponry, and electronic systems in cooperation with the government. The Military Industrial theme has 46 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 Military Industrial 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. Note that the 3M Company information on this page should be used as a complementary analysis to other 3M's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

Complementary Tools for 3M Stock 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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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.
Quarterly Earnings Growth YOY
-0.95
Market Capitalization
86.3 B
Quarterly Revenue Growth YOY
-0.028
Return On Assets
0.0893
Return On Equity
0.29
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.