We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Restructuring and buybacks support growth, but cost inflation and weak consumer demand remain concerns.
3M Company’s (MMM - Free Report) shares have risen 13.9% in the past year compared with the S&P 500 composite’s growth of 14.2% and the industry’s decline of 17.5%. Among its peers, Carlisle Companies Incorporated (CSL - Free Report) and Griffon Corporation (GFF - Free Report) shares have gained 19% and 41.9%, respectively, over the same time frame.
MMM Stock’s One-Year Price Performance
Closing at $187.77 in the last trading session, the stock is trading lower than its 52-week high of $196.9 and significantly higher than its 52-week low of $139.34. 3M stock is trading above both its 50-day and 200-day moving averages, indicating positive price momentum and a bullish technical trend. This suggests improving investor sentiment and confidence in the company's near-term performance and long-term prospects.
Let’s take a look at 3M’s fundamentals to better analyze how to play the stock.
Factors Driving MMM’s Performance
The company is benefiting from strong momentum in its Safety and Industrial segment, supported by growth across personal safety, industrial adhesives and tapes, automotive aftermarket, fire safety and rescue and electrical markets. Stable demand for electrical infrastructure products, including medium-voltage cable accessories and insulation tapes, is expected to support the segment in the coming quarters. Organic sales in the segment increased 7% year over year in the third quarter of 2026.
3M’s Transportation and Electronics segment is benefiting from solid growth across the semiconductor, data center, aerospace and defense end markets. Organic revenues increased 0.5% year over year in the third quarter. Backed by strength across its businesses, the company provided a positive outlook. For 2026, 3M expects total adjusted organic sales to grow more than 3.5% on a year-over-year basis.
3M is focused on improving operational efficiency through a range of organizational and business transformation initiatives. These include reducing the size of its corporate center, streamlining its geographic footprint, simplifying the supply chain, aligning go-to-market models with customer needs and optimizing manufacturing roles based on production volumes. The company expects these restructuring actions to lower operating costs and support margin expansion and stronger cash flow over the long term.
MMM has strengthened and expanded the geographical footprint of its businesses through acquisitions while unlocking cash by disposing of underperforming or non-core assets. In July 2026, the company completed the acquisition of Madison Fire & Rescue in partnership with Bain Capital. Under the joint venture, 3M contributed its Scott Safety business, received $700 million in cash and retained a 50.1% stake, while Bain Capital holds the remaining 49.9% interest. The transaction further strengthened 3M’s safety portfolio and expanded its presence in the safety products market.
3M remains committed to returning capital to shareholders through dividends and share repurchases. In the first nine months of 2026, the company rewarded its shareholders with $1.3 billion in dividends and $3.2 billion in buybacks.
However, weakness in the consumer retail end markets, owing to subdued consumer discretionary spending, remains a concern for MMM. This is reflected in the Consumer segment’s results. The segment’s organic revenues declined 0.2% in the third quarter of 2026.
Cost inflation continues to weigh on 3M’s operations. In the third quarter of 2026, the company’s cost of sales increased marginally year over year to $3.8 billion. Its selling, general and administrative expenses increased 12.3% year over year to $921 million, accounting for 14% of total revenues compared with 12.5% in the year-ago quarter.
Stock Valuation
MMM has a forward 12-month price-to-earnings ratio of 19.33X, which is above the industry average of 15.35X. In comparison with 3M’s valuation, its peers Carlisle and Griffon are trading cheaper. Carlisle and Griffon are trading at 15.97X and 16.47X, respectively.
Image Source: Zacks Investment Research
Earnings Estimate Revision
Earnings estimates for MMM have increased 1.5% over the past 60 days for 2026 and 0.8% for 2027.
Image Source: Zacks Investment Research
Conclusion
3M is poised to benefit from sustained growth in its Safety and Industrial and Transportation and Electronics segments, driven by new product launches and a favorable 2026 outlook. Continued restructuring initiatives are expected to improve operational efficiency, while shareholder-friendly measures may further strengthen cash flow and boost investor confidence.
However, the near-term challenges like softness in consumer retail markets and cost inflation are limiting this Zacks Rank #3 (Hold) company’s near-term prospects. While current shareholders should hold their positions, new investors should wait for the stock to retract some of its recent gains and provide a better entry point.
View the Zacks #1 Rank List
Image: Bigstock
3M Rises 13.9% in the Past Year: Should You Buy, Sell or Hold the Stock?
Key Takeaways
3M Company’s (MMM - Free Report) shares have risen 13.9% in the past year compared with the S&P 500 composite’s growth of 14.2% and the industry’s decline of 17.5%. Among its peers, Carlisle Companies Incorporated (CSL - Free Report) and Griffon Corporation (GFF - Free Report) shares have gained 19% and 41.9%, respectively, over the same time frame.
MMM Stock’s One-Year Price Performance
Closing at $187.77 in the last trading session, the stock is trading lower than its 52-week high of $196.9 and significantly higher than its 52-week low of $139.34. 3M stock is trading above both its 50-day and 200-day moving averages, indicating positive price momentum and a bullish technical trend. This suggests improving investor sentiment and confidence in the company's near-term performance and long-term prospects.
Image Source: Zacks Investment Research
MMM Stock Trading Above 50-Day & 200-Day Moving Averages
Image Source: Zacks Investment Research
Let’s take a look at 3M’s fundamentals to better analyze how to play the stock.
Factors Driving MMM’s Performance
The company is benefiting from strong momentum in its Safety and Industrial segment, supported by growth across personal safety, industrial adhesives and tapes, automotive aftermarket, fire safety and rescue and electrical markets. Stable demand for electrical infrastructure products, including medium-voltage cable accessories and insulation tapes, is expected to support the segment in the coming quarters. Organic sales in the segment increased 7% year over year in the third quarter of 2026.
3M’s Transportation and Electronics segment is benefiting from solid growth across the semiconductor, data center, aerospace and defense end markets. Organic revenues increased 0.5% year over year in the third quarter. Backed by strength across its businesses, the company provided a positive outlook. For 2026, 3M expects total adjusted organic sales to grow more than 3.5% on a year-over-year basis.
3M is focused on improving operational efficiency through a range of organizational and business transformation initiatives. These include reducing the size of its corporate center, streamlining its geographic footprint, simplifying the supply chain, aligning go-to-market models with customer needs and optimizing manufacturing roles based on production volumes. The company expects these restructuring actions to lower operating costs and support margin expansion and stronger cash flow over the long term.
MMM has strengthened and expanded the geographical footprint of its businesses through acquisitions while unlocking cash by disposing of underperforming or non-core assets. In July 2026, the company completed the acquisition of Madison Fire & Rescue in partnership with Bain Capital. Under the joint venture, 3M contributed its Scott Safety business, received $700 million in cash and retained a 50.1% stake, while Bain Capital holds the remaining 49.9% interest. The transaction further strengthened 3M’s safety portfolio and expanded its presence in the safety products market.
3M remains committed to returning capital to shareholders through dividends and share repurchases. In the first nine months of 2026, the company rewarded its shareholders with $1.3 billion in dividends and $3.2 billion in buybacks.
However, weakness in the consumer retail end markets, owing to subdued consumer discretionary spending, remains a concern for MMM. This is reflected in the Consumer segment’s results. The segment’s organic revenues declined 0.2% in the third quarter of 2026.
Cost inflation continues to weigh on 3M’s operations. In the third quarter of 2026, the company’s cost of sales increased marginally year over year to $3.8 billion. Its selling, general and administrative expenses increased 12.3% year over year to $921 million, accounting for 14% of total revenues compared with 12.5% in the year-ago quarter.
Stock Valuation
MMM has a forward 12-month price-to-earnings ratio of 19.33X, which is above the industry average of 15.35X. In comparison with 3M’s valuation, its peers Carlisle and Griffon are trading cheaper. Carlisle and Griffon are trading at 15.97X and 16.47X, respectively.
Image Source: Zacks Investment Research
Earnings Estimate Revision
Earnings estimates for MMM have increased 1.5% over the past 60 days for 2026 and 0.8% for 2027.
Image Source: Zacks Investment Research
Conclusion
3M is poised to benefit from sustained growth in its Safety and Industrial and Transportation and Electronics segments, driven by new product launches and a favorable 2026 outlook. Continued restructuring initiatives are expected to improve operational efficiency, while shareholder-friendly measures may further strengthen cash flow and boost investor confidence.
However, the near-term challenges like softness in consumer retail markets and cost inflation are limiting this Zacks Rank #3 (Hold) company’s near-term prospects. While current shareholders should hold their positions, new investors should wait for the stock to retract some of its recent gains and provide a better entry point.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.