3M Company MMM currently boasts robust prospects on strength in its businesses, solid liquidity position, acquired assets and a sound capital-deployment strategy.
The Zacks Rank #2 (Buy) company has a market capitalization of $76.4 billion. In the past three months, it has lost 10.1% compared with the industry’s decline of 13.5%.
Image Source: Zacks Investment Research
Let’s delve into the factors that make investment in the company a smart choice at the moment.
Business Strength: 3M has been benefiting from strength across its manufacturing, electronic materials, healthcare IT, home improvement, wound care and automotive end markets of late. The company’s pricing actions have also been helping it to mitigate the adverse impact of raw material and logistics cost inflation. For 2022, the company anticipates organic sales growth of 2-5% and total revenue growth of 1-4% on a year-over-year basis.
Portfolio Restructuring Benefits: In April 2022, MMM acquired the technology assets of LeanTec. The acquisition is expected to strengthen the company’s ability to deliver a more connected, digital bodyshop solution via its RepairStack Performance Solutions. Also, in March 2022, it sold its floor care products business. The portfolio reshaping actions will enhance its shareholder value over time.
Rewards to Shareholders: It remains committed to rewarding shareholders through dividend payouts and share buybacks. In the first three months of 2022, 3M paid out dividends worth $852 million and repurchased shares worth $773 million. Also, it hiked the quarterly dividend rate by 0.7% in February 2022.
Initiatives: 3M’s focus on solid portfolio building, innovation and transformation, growth initiatives and cost management actions will likely be beneficial. Also, it has been boosting its marketing capabilities by investing in global programs using digital platforms and available data, which will likely help it benefit from the growing opportunities in electronics and software, home improvement, personal safety and other industries.
Estimate Revisions: In the past 60 days, the Zacks Consensus Estimate for its 2022 earnings has moved up from $10.22 to $10.84 on six upward estimate revisions against none downward. The consensus estimate for its 2023 earnings has increased from $10.92 to $11.30 on five upward estimate revisions versus none downward.
Other Stocks to Consider
Some other top-ranked companies are discussed below:
Griffon Corporation GFF presently sports a Zacks Rank #1 (Strong Buy). GFF’s earnings surprise in the last four quarters was 97%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.
In the past 60 days, Griffon’s earnings estimates have increased 80.5% for fiscal 2022 (ending September 2022). The stock has declined 9.5% in the past six months.
Carlisle Companies Incorporated CSL presently flaunts a Zacks Rank of 1. CSL delivered a trailing four-quarter earnings surprise of 23%, on average.
In the past 60 days, Carlisle’s earnings estimates have increased 22.8% for 2022. CSL’s shares have declined 1.3% in the past six months.
Nordson Corporation NDSN presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 4.5%, on average.
In the past 60 days, NDSN’s earnings estimates have increased 3% for 2022. The stock has declined 6.3% in the past year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
3M Company (MMM) : Free Stock Analysis Report
Carlisle Companies Incorporated (CSL) : Free Stock Analysis Report
Nordson Corporation (NDSN) : Free Stock Analysis Report
Griffon Corporation (GFF) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research