3M (MMM) is the best Dow Jones stock Tuesday after the Post-it Note maker beat top- and bottom-line expectations for its fourth quarter and issued a positive outlook for 2025.
In the three months ending December 31, 3M's revenue increased 0.1% year over year to $6 billion. Its earnings per share (EPS) declined 1.2% from the year-ago period to $1.68.
The results beat analysts' expectations. Wall Street was anticipating revenue of $5.8 billion and earnings of $1.66 per share, according to Barron's.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free 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.
"Our fourth quarter capped a year of strong results as we returned to positive organic revenue growth in the full year," said 3M CEO Bill Brown in a statement. "We are carrying this momentum forward and are confident in our ability to deliver our 2025 guidance."
For fiscal 2025, 3M expects to achieve EPS in the range of $7.60 to $7.90, representing growth of 4.1% to 8.2% from 2024 and right around analysts' expectations for earnings of $7.78 per share.
Is 3M stock a buy, sell or hold?
3M has turned in a strong performance on the price charts over the past 12 months, up 38% on a total return basis (price change plus dividends) vs the S&P 500's 26% gain. And analysts are bullish on the blue chip stock.
According to S&P Global Market Intelligence, the consensus recommendation among the 19 analysts following the stock that it tracks is a Buy.
However, analysts' price targets have had a tough time keeping up with 3M's surging share price. Indeed, the average price target of $146.07 is right around where the large-cap stock trades today.
Financial services firm Deutsche Bank is one of the more bullish outfits on MMM stock with a Buy rating and $158 price target. The group also has 3M as one of its top stock picks for Q1 2025.
"We view MMM as a unique self-help story with new CEO Bill Brown being the catalyst for change that should elevate the company back to its historical prestigious status as among the best-in-class MI/EE companies," says Deutsche Bank analyst Nicole DeBlase.
She adds that 3M's upcoming Investor Day on February 26 should be "a positive catalyst where Bill Brown lays out his multi-year improvement plan for the company, and we expect this to result in a multi-year positive earnings revision cycle."
Related Content
-
I'm 61 and need $50,000 for home repairs. Should I borrow given today's rates or take a withdrawal from my $950,000 401(k)?We asked financial experts for advice.
-
Credit Score News Could Help First-Time HomebuyersLenders who sell mortgages to Fannie Mae and Freddie Mac used to only be able to use FICO for loan qualification. Now there's VantageScore, owned by the three major credit bureaus.
-
Headed for the Retirement Red Zone? This Eight-Step Game Plan Helps to Avoid FumblesThese strategies help safeguard your nest egg and ensure long-term financial success during the five years before retirement and the five years after.
-
I'm a Financial Planner: This Is How You Can Get Started With RMDsThe IRS will come knocking for its share of your tax-deferred retirement savings when you hit 73, but planning ahead for RMDs will ensure you're ready.
-
How Will You Replace Your Paycheck in Retirement? A Financial Adviser's Tips on Income PlanningBills don't stop once you retire — and you can't expect your Social Security checks to cover them all. Don't risk running out of money. Instead, make a plan.
-
From Pets to Paintings: The Little Things That Can Cause Big Estate TroubleSentimental items might have little monetary value, but their disposition can cause hurt feelings. Talking about who wants what and labeling items can help.
-
The Clock Is Ticking: Take Advantage of These Retirement Tax Benefits While They LastRecent tax changes, including an extra $6,000 deduction for those 65 and older, present a golden opportunity for retirees to reduce their tax bills.
-
I'm a Financial Adviser: This Is Why Unmarried Same-Sex Couples Need an Estate PlanWhen illness or death occurs within an unmarried same-sex partnership, family members can step in and push the surviving partner out. An estate plan is vital.
-
Stocks Bounce But End With Big Weekly Losses: Stock Market TodayThe stock market rout continued on Friday, but a late-day burst of buying power brought the main indexes off their session lows.
-
Costco Gold Bars Keep Selling Out. Are They a Smart Investment?How Costco's bullion program works, how to get the best deal and whether it makes sense for investors.
