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Here's Why You Should Consider Investing in 3M (MMM) Stock

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3M Company (MMM - Free Report) currently boasts robust prospects on strength in its businesses, solid product portfolio, acquired assets and a sound capital-deployment strategy.

Zacks Investment Research
Image Source: Zacks Investment Research

The Zacks Rank #2 (Buy) company has a market capitalization of $85.6 billion. In the past three months, it has gained 3.2% against the industry’s decline of 3.3%.

Let’s delve into the factors that make investment in the company a smart choice at the moment.

Solid Product Portfolio: 3M is well-positioned to reap benefits from a solid product portfolio, focus on innovation and investments in growth opportunities. Its household products like Nexcare, Post-it, Scotch, Scotch-Brite and Scotchgard are market leaders in their categories. Also, its plan to boost its marketing capabilities by investing in global programs using digital platforms and available data bode well.

Business Strength: The company stands to gain from its presence in multiple end markets, which allows it to neutralize risks associated with a single market with strength across others. Strength across the company’s manufacturing, electronic materials, healthcare IT, home improvement and automotive end markets will likely drive its performance in the quarters ahead. For 2022, it anticipates organic sales growth of 2-5% and total revenue growth of 1-4% year over year.

Rewards to Shareholders: Its policy of rewarding shareholders handsomely through dividend payments and share buybacks will work in its favor. In first-quarter 2022, it paid out dividends worth $852 million and repurchased shares worth $773 million. It also increased the quarterly dividend rate by 0.7% in February 2022.

Acquisition Benefits: 3M’s acquisition of LeanTec’s technology assets (April 2022) is expected to help it deliver a more connected, digital bodyshop solution via its RepairStack Performance Solutions.

Estimate Revisions: In the past 30 days, the Zacks Consensus Estimate for the company’s 2022 earnings has trended up from $10.22 to $10.85 per share on six upward estimate revisions against none downward. Also, the estimates for 2023 earnings have increased from $10.92 to $11.37 on six upward estimate revisions versus none downward.

Other Stocks to Consider

Some other top-ranked companies are discussed below.

Griffon Corporation (GFF - Free Report) 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 here.

In the past 30 days, Griffon’s earnings estimates have increased 40% for fiscal 2022 (ending September 2022). The stock has gained 38.4% in the past three months.

Carlisle Companies Incorporated (CSL - Free Report) presently flaunts a Zacks Rank of 1. Its earnings surprise in the last four quarters was 23%, on average.

In the past 30 days, Carlisle’s earnings estimates have increased 11% for 2022. CSL’s shares have gained 10.1% in the past three months.

ACCO Brands Corporation (ACCO - Free Report) presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 22.19%, on average.

In the past 30 days, ACCO’s earnings estimates have increased 1.3% for 2022. Its shares have lost 15.2% in the past three months.

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