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3M (MMM) Completes Divestiture of Its Healthcare Business
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3M Company (MMM - Free Report) recently completed the previously announced spin-off of its healthcare business into a separate public company. The spun-off entity, which is renamed Solventum Corporation, is listed on the NYSE under the ticker SOLV.
MMM’s shares increased 6% yesterday to eventually close the trading session at $94.02.
Inside the Headlines
MMM shareholders received one share of Solventum stock for every four shares of 3M stock held on the record date for the distribution, Mar 18, 2024. The distribution is proposed to be tax-free to MMM’s shareholders. It’s worth noting that 19.9% of outstanding shares of Solventum stock were retained by 3M and will be monetized within five years after completion of the spin-off.
The spin-off of 3M and its healthcare unit will facilitate each entity to flourish through better operational focus, capital allocation policies and financial flexibility. Solventum will serve a global addressable market worth about $93 billion, which is expected to grow in the range of 4-6% through 2026. The new entity will operate through four operating segments, which are Medical Surgical, Dental Solutions, Health Information Systems and Purification & Filtration.
Zacks Rank and Price Performance
3M currently carries a Zacks Rank #3 (Hold).
The company has been benefiting from strength in the advanced materials and OEM (Original Equipment Manufacturer) businesses within the Transportation and Electronics segment. For 2024, MMM estimates the Transportation and Electronics segment’s organic sales growth to be flat to up low-single-digits organically.
However, MMM’s performance is being hurt by lower demand for disposable respirators within the Safety and Industrial unit. Softness in stationery and office businesses is also affecting the Consumer unit.
Image Source: Zacks Investment Research
In the past month, the stock gained 2.8% compared with the industry’s growth of 4.1%.
Stocks to Consider
Some better-ranked companies from the same space are discussed below.
CSL delivered a trailing four-quarter average earnings surprise of 7.6%. In the past 60 days, the Zacks Consensus Estimate for CSL’s 2024 earnings has increased 9.7%.
Griffon Corporation (GFF - Free Report) presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 42%. The Zacks Consensus Estimate for GFF’s fiscal 2024 earnings has decreased 0.9% in the past 60 days.
Danaher Corporation (DHR - Free Report) currently carries a Zacks Rank #2. It delivered a trailing four-quarter average earnings surprise of 6.8%. In the past 60 days, the consensus estimate for DHR’s 2024 earnings has declined 2.6%.
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3M (MMM) Completes Divestiture of Its Healthcare Business
3M Company (MMM - Free Report) recently completed the previously announced spin-off of its healthcare business into a separate public company. The spun-off entity, which is renamed Solventum Corporation, is listed on the NYSE under the ticker SOLV.
MMM’s shares increased 6% yesterday to eventually close the trading session at $94.02.
Inside the Headlines
MMM shareholders received one share of Solventum stock for every four shares of 3M stock held on the record date for the distribution, Mar 18, 2024. The distribution is proposed to be tax-free to MMM’s shareholders. It’s worth noting that 19.9% of outstanding shares of Solventum stock were retained by 3M and will be monetized within five years after completion of the spin-off.
The spin-off of 3M and its healthcare unit will facilitate each entity to flourish through better operational focus, capital allocation policies and financial flexibility. Solventum will serve a global addressable market worth about $93 billion, which is expected to grow in the range of 4-6% through 2026. The new entity will operate through four operating segments, which are Medical Surgical, Dental Solutions, Health Information Systems and Purification & Filtration.
Zacks Rank and Price Performance
3M currently carries a Zacks Rank #3 (Hold).
The company has been benefiting from strength in the advanced materials and OEM (Original Equipment Manufacturer) businesses within the Transportation and Electronics segment. For 2024, MMM estimates the Transportation and Electronics segment’s organic sales growth to be flat to up low-single-digits organically.
However, MMM’s performance is being hurt by lower demand for disposable respirators within the Safety and Industrial unit. Softness in stationery and office businesses is also affecting the Consumer unit.
Image Source: Zacks Investment Research
In the past month, the stock gained 2.8% compared with the industry’s growth of 4.1%.
Stocks to Consider
Some better-ranked companies from the same space are discussed below.
Carlisle Companies Incorporated (CSL - Free Report) currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CSL delivered a trailing four-quarter average earnings surprise of 7.6%. In the past 60 days, the Zacks Consensus Estimate for CSL’s 2024 earnings has increased 9.7%.
Griffon Corporation (GFF - Free Report) presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 42%. The Zacks Consensus Estimate for GFF’s fiscal 2024 earnings has decreased 0.9% in the past 60 days.
Danaher Corporation (DHR - Free Report) currently carries a Zacks Rank #2. It delivered a trailing four-quarter average earnings surprise of 6.8%. In the past 60 days, the consensus estimate for DHR’s 2024 earnings has declined 2.6%.