3M Company’s (MMM - Free Report) business arm — 3M Food Safety — recently secured a contract from the U.S. Department of Agriculture Food Safety and Inspection Service (USDA FSIS) for an undisclosed amount. Per the deal, 3M’s state-of-the-art pathogen detection kits and instruments will be used by the USDA.
Henceforth, the company’s 3M Molecular Detection System will be primarily used for detecting E. coli O157, Listeria monocytogenes, Salmonella — the three main pathogenic organisms affecting the safety of poultry, meat and egg-related products.
A number of food producers across the globe recognize 3M Molecular Detection System as a highly efficient and accurate detection tool. This system has been consistently validated by popular scientific validation organizations across the globe for a variety of sample types.
The system combines unique technologies — bioluminescence detection and isothermal DNA amplification — which easily outpace the limitations of conventional Polymerase Chain Reaction pathogen testing methods.
3M currently carries a Zacks Rank #3 (Hold).
On a quarter-to-date basis, shares of the company have rallied 1.9%, outperforming 1% growth recorded by the industry.
The company is poised to grow on the back of strategic restructuring moves, ongoing portfolio-solidification initiatives and efficient enterprise resource planning system. However, input price inflation and higher freight charges might continue to escalate the company’s aggregate costs, in turn, dampening its profitability in the quarters ahead.
Stocks to Consider
Some better-ranked stocks in the same space are listed below:
Hitachi Ltd. (HTHIY - Free Report) sports a Zacks Rank #1 (Strong Buy). The company’s earnings per share (EPS) are predicted to grow 13% in the next three to five years. You can see the complete list of today’s Zacks #1 Rank stocks here.
Raven Industries, Inc. (RAVN - Free Report) also flaunts a Zacks Rank of 1. The company’s EPS is estimated to be up 10% over the next three to five years.
Sumitomo Corp. (SSUMY - Free Report) is another Zacks #1 Ranked company. The company’s EPS is projected to rise 5.50% during the same time frame.
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