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.
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.
"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
-
Cord Cutting Could Help You Save Over $10,000 in 10 YearsHow cutting the cord can save you money and how those savings can grow over time.
-
The '8-Year Rule of Social Security' — A Retirement RuleThe '8-Year Rule of Social Security' holds that it's best to be like Ike — Eisenhower, that is. The five-star General knew a thing or two about good timing.
-
Cord Cutting Could Help You Save Over $10,000 in 10 Years
How cutting the cord can save you money and how those savings can grow over time.
-
Should I Buy Stocks or Should I Buy Bonds Right Now?Generally speaking, stocks provide reasonable growth while bonds provide stable income. Each play important roles in diversified portfolios.
-
You Were Planning to Retire This Year: Should You Go Ahead?If the economic climate is making you doubt whether you should retire this year, these three questions will help you make up your mind.
-
Are You Owed Money Thanks to the SSFA? You Might Need to Do Something to Get ItThe Social Security Fairness Act removed restrictions on benefits for people with government pensions. If you're one of them, don't leave money on the table. Here's how you can be proactive in claiming what you're due.
-
From Wills to Wishes: An Expert Guide to Your Estate Planning PlaybookConsider supplementing your traditional legal documents with this essential road map to guide your loved ones through the emotional and logistical details that will follow your loss.
-
Why Investing Abroad Could Pay OffCountries overseas are stimulating their economies, and their stocks are compelling bargains.
-
Are These the Next Stocks to Split?Interactive Brokers' recently split its stock to makes its shares more accessible to investors. Could these high-priced stocks be next?
-
Your Home + Your IRA = Your Long-Term Care SolutionIf you're worried that long-term care costs will drain your retirement savings, consider a personalized retirement plan that could solve your problem.
