3M’s new launch
On October 16, 2017, 3M (MMM) announced that it has launched its 5410 Diamond Mesh Trim under Scotchlite. It’s a reflective material for workwear. 3M says the material is patent pending.
Ryan Gallagher, 3M’s Global Market Development manager, said, “Today’s marketplace often demands that a premium be paid for innovative products with a sustainability story. The 5410 Diamond Mesh Trim disrupts that trend by providing a high-value, high-visibility and low-material waste trim to brands and workers around the world.”
MMM stock performance
MMM stock rose 1.7% and closed at $221.32 for the week ended October 20, 2017. The rise widened its 100-day moving average gap. The stock traded 5.8% above its 100-day moving average of $209.20, indicating a strong upward trend. It’s worth noting that its 14-day relative strength index level is 77, indicating that the stock has moved into an overbought position. The stock is also trading 4.8% above analysts’ target price of $211.23. On a year-to-date basis, the stock has risen 23.9%.
For the week ended October 20, 2017, MMM underperformed the SPDR Dow Jones Industrial Average ETF (DIA), which rose 2.0%. The fund has invested 6.5% of its portfolio in 3M. Other holdings of the fund include Boeing (BA), Goldman Sachs (GS), and Caterpillar (CAT) with weights of 7.7%, 7.2%, and 3.9%, respectively, as of October 20, 2017.