3M Stock Story


USD 151.43  0.81  0.53%   

General Electric would continue recover faster as its shares surged to 4.70 percent against 3M's 3.2117%. While many traders are getting carried away by overanalyzing competition within industrials space, it is quite reasonable to summarize both, 3M and General Electric as potential medium-term investments. We are going to summarize some of the competitive aspects of both 3M and General.
Published over a month ago
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Will 3M (NYSE:MMM) shadow General Electric price growth?

By analyzing existing primary indicators between 3M and General, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in General with a short position in 3M. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. 3M has an asset utilization ratio of 107.98 percent. This denotes that the company is making $1.08 for each dollar of assets. An increasing asset utilization means that 3M Company is more efficient with each dollar of assets it utilizes for everyday operations.

How important is 3M's Liquidity

3M financial leverage refers to using borrowed capital as a funding source to finance 3M Company ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. 3M financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between 3M's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for 3M, but it might be worth checking our own buy vs. sell analysis

Breaking it down

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me take a closer look at 3M revenue. Based on the latest financial disclosure, 3M Company reported 35.33 B of revenue. This is much higher than that of the Industrials sector and significantly higher than that of the Conglomerates industry. The revenue for all United States stocks is significantly lower than that of the stock. As for General Electric we see revenue of 74.16 B, which is much higher than that of the Conglomerates

3M35.33 Billion
Sector3.5 Billion
General74.16 Billion
35.3 B
74.2 B

Our take on today 3M hike

3M new maximum drawdown upsurges over 8.68. 3M Company exhibits very low volatility with skewness of 0.0 and kurtosis of 0.77. However, we advise investors to further study 3M Company technical indicators to make sure 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 bullying 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.

Our Final Perspective on 3M

While other entities in the conglomerates industry are either recovering or due for a correction, 3M may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the new economy, it is better to hold off any trading of 3M as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to 3M.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of 3M Company. Please refer to our Terms of Use for any information regarding our disclosure principles.

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