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3M (MMM) Shares Fall on Expectations of Slow Growth in 2024

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Per a Reuters report, 3M Company (MMM - Free Report) expects "a slow growth environment" in 2024. Amid weakness in the consumer and electronics segments, the company has lowered its sales forecast for the third quarter of 2023. Following this bearish commentary, shares of the company declined 5.7% at the close of business on Sep 13.

Due to a slow recovery in China, 3M now expects third-quarter sales between $7 billion and $8 billion compared with $8 billion anticipated earlier.

Per Reuters, 3M’s CFO Monish Patolawala said, "The consumer has shifted spending from discretionary to staples and other experimental activities."

The report also stated that 3M has been experiencing a significant drop in U.S. retailer inventories as spending on consumer electronics dropped due to inflation and higher borrowing rates.

3M has been grappling with lower disposable respirator demand within the Safety and Industrial segment. In the second quarter, lower disposable respirator demand hurt the unit’s organic sales by $140 million. For the third quarter, the company expects lower disposable respirator demand and last year's exit of Russia operations to affect sales by approximately $130 million or 1.5 percentage points.

Zacks Rank & Other Stocks to Consider

3M presently carries a Zacks Rank #2 (Buy).

Below we discuss some other top-ranked stocks worth considering from the broader Industrial Products sector:

Flowserve Corporation (FLS - Free Report) presently sports a Zacks Rank #1 (Strong Buy). The company pulled off a trailing four-quarter earnings surprise of 6.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.

Flowserve has an estimated earnings growth rate of 79.1% for the current year. The stock has jumped around 26% so far this year.

Graham Corporation (GHM - Free Report) currently flaunts a Zacks Rank #1. The company pulled off a trailing four-quarter earnings surprise of 243.1%, on average.

Graham has an estimated earnings growth rate of 400% for the current fiscal year. The stock has rallied 66% so far this year.

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