Is 3M’s Stock Set to Break Its 52-Week High?
3M Company’s stock performance
3M Company’s (MMM) stock rose 3.2% from the beginning of December 2016 to January 9, 2017. MMM’s stock is hovering near its 52-week high, and it appears to be consolidating in that range.
3M’s other industrial peers Honeywell International (HON) and United Technologies (UTX) made similar gains in the period, with returns of 3.2% and 3.5%, respectively. Stanley Black & Decker (SWK) and the SPDR S&P 500 ETF (SPY) underperformed 3M with returns of -0.80% and 2.8%, respectively, in the period.
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3M’s stock performance was mainly driven by its EPS (earnings per share) guidance for 2017. 3M expects to post EPS of $8.45–$8.80 in 2017, implying a rise of 4%–8% year-over-year. During this period, the company will divest its Prescription Eyewear and Identity Management businesses as part of its realignment plan.
Moving average and relative strength index
3M’s stock price rise since December 1 has caused the stock to breach its 100-day moving average price. 3M is now trading 1.5% above its 100-day moving average of $174.69, indicating a trend reversal in the stock. 3M’s 52-week low is $134.64, and its 52-week high is $182.27.
The stock’s 14-day relative strength index (or RSI) of 52 indicates that it’s neither oversold nor overbought. An RSI score of above 70 means that a stock has moved temporarily into an overbought situation, and an RSI score of below 30 indicates that a stock has moved temporarily into an oversold position.
Continue reading for a closer look at the impact of the rise in the federal interest rate on 3M’s pension plans, analysts’ latest recommendations on the stock, and the stock’s most recent valuations.