3M Leads Dow Stocks After Massive Earnings Beat
3M stock is headed toward its best day ever after the industrial conglomerate's impressive earnings report. Here's what you need to know.


3M (MMM) stock is soaring Friday to lead its fellow Dow Jones stocks and notch its biggest one-day price gain on record. The impressive pop comes after the Post-it maker topped revenue and earnings expectations for its second quarter and updated its full-year profit forecast.
In the three months ended June 30, 3M's revenue decreased 0.5% year-over-year to $6.3 billion, including declines in all three of its major business segments. Its earnings per share (EPS) were up 38.8% from the year-ago period to $1.93.
"We delivered another strong quarter with adjusted earnings growth up double-digits and robust cash generation," said 3M CEO William Brown in a statement. "As I look ahead, I am focused on three priorities: driving sustained organic revenue growth, increasing operational performance, and effectively deploying capital."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results handily beat analysts' expectations. Wall Street was anticipating revenue of $5.9 billion and earnings of $1.68 per share, according to Yahoo Finance.
As a result of its stronger-than-expected performance in the first half of the year, 3M raised the low end of its full-year profit forecast. The company now anticipates earnings per share in the range of $7 to $7.30, up from its previous forecast of $6.80 to $7.30.
Is 3M stock a buy, sell or hold?
Despite 3M's impressive 35% year-to-date gain, analysts are on the sidelines when it comes to the blue chip stock.
According to S&P Global Market Intelligence, the average analyst target price for MMM stock is $110.23, representing a discount of about 12% to current levels. Additionally, the consensus recommendation is a Hold. However, analysts may revise their targets higher following 3M's better-than-expected performance in the second quarter.
Financial services firm UBS Global Research is one of those with a Neutral rating (equivalent to a Hold) and a $100 price target on 3M stock.
"A new CEO, progress on PFAS clean-up, and margin execution are positives for the stock, however our optimism is tempered by continued topline weakness, uncertainty around remaining PFAS liabilities (particularly state Attorneys General & personal injury) and constrained free cash flow," UBS analyst Damian Karas said in a June 24 note.
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
What Trump’s 'Big Beautiful Bill' Means for Your Utility Bills
If passed, the 'Big Beautiful Bill' could make home energy upgrades more expensive and raise monthly costs. Here's how much more you might pay and how to prepare.
-
What Boomers and Gen Xers Can Learn from Younger Colleagues
Whether you're Gen X or a baby boomer, your younger colleagues' opinions on work may help you find a new job or be happier in the one you've got.
-
Eight Estate Planning Steps to Protect Your Loved Ones (and Your Legacy)
Two-thirds of Americans don't have an estate plan. If you're one of them, these are the essential steps to take now to prevent problems for your family later.
-
The Six Pros This Adviser Says You Need to Sell Your Business
Selling your business isn't as simple as getting the best price and walking away. These are the six professionals you'll need to get a deal across the finish line.
-
The Three C's to Financial Success: A Financial Planner's Guide to Build Wealth
Consistency, commitment and confidence in your chosen strategy are more critical to your financial success than finding the 'perfect' financial plan.
-
A Financial Adviser's Guide to Solving Your Retirement Puzzle: Five Key Pieces
If retirement's a puzzle you're struggling with, try answering these five questions. The answers will guide you toward a solution.
-
You're Close to Retirement and Cashed Out: How Do You Get Back In?
If you've been scared into an all-cash position, it's wise to consider reinvesting your money in the markets. Here's how a financial planner recommends you can get back in the saddle.
-
After the Disaster: An Expert's Guide to Deciding Whether to Rebuild or Relocate
Homeowners hit by disaster must weigh the emotional desire to rebuild against the financial realities of insurance coverage, unexpected costs and future risk.
-
A Financial Expert's Tips for Lending Money to Family and Friends
What starts as a lifeline can turn into a minefield if the borrower ghosts the lender. Following these three steps can help you avoid family feuds over funds.
-
Stock Market Today: Good Feelings and Solid Data Lift Stocks
Resilience and de-escalation defined another generally positive day for financial markets.