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- 1 3M Company (NYSE: MMM) stock price is trading at $101.57 currently with a market capitalization of $56.033 Billion.
- 2 MMM stock price observed an increase of 0.77% over the last 7 days.
MMM stock is performing poorly. It has made lower lows and the downward momentum is picking up the pace. MMM has taken a pause recently and breached the 50-moving average. However, it has faced rejection from the resistance level of $104.50.
MMM’s last year’s earnings growth was -5.80%. However, its beta value of 0.95 suggests relatively low volatility. MMM’s price-to-earnings ratio is 11.10, which is lower than the industry average of 17.63 and indicates a good valuation.
With a return on equity of 35.65%, MMM outperforms the industry with a profit margin of 35.9%. A dividend yield of 5.89% indicates a generous dividend policy for 3M, which outperforms the S&P 500 by 1.34%. 3M’s earnings growth last year was -5.80%, but are expected to grow by 2.57% annually over the next five years.
MMM share has a lower risk profile than the market average and a moderate growth perspective for the next five years. Therefore, 3M may be a suitable option for those seeking value and income who are willing to overlook its recent shortcomings.
3M Stock Price Technical Analysis
The price of 3M Company (MMM) has jumped above the 50-day moving average but was rejected by the upper resistance level. However, if sellers continue to push the market lower, MMM stock prices can drop further.
The RSI has been trading close to the median area. The RSI line is around 54.34. The 14 SMA line has a value of 47.26 points which indicates that 3M Company stock price is in the neutral area.
The MACD line at -0.2606 and the signal line at -0.3720 is below the zero line, suggesting that the MACD is in negative territory and is giving negative signals as of now.
Conclusion
The 3M Company stock has underperformed in the market due to negative earnings growth and downward momentum in the stock. In addition to its low valuation, high profitability, and generous dividend, the stock has some positive aspects that may attract investors. Additionally, the company has a lower risk profile than the market average and a moderate growth outlook for the next five years. Therefore, MMM may be a suitable option for those seeking value and income who are willing to overlook its recent weaknesses.
Technical Levels:
- Support – The current support level is $99.40.
- Resistance –The current resistance level is $105.86.
Disclaimer
The analysis given in this article is for informational and educational use only. Do not use this information as financial, investment, or as trading advice. Investing and trading in stock is a risky task. Please consider your circumstances and risk profile before making any investment decisions.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
