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3M’s Stock Performance since Its 4Q17 Earnings

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3M to announce its 1Q18 earnings

In a press release, 3M (MMM) said that it plans to announce its 1Q18 earnings on April 24, 2018, before the market opens. Management will hold a conference the same day to discuss the earnings.

In this series, we’ll look at 3M’s stock performance since its 4Q17 earnings release. We’ll review analysts’ revenue and earnings estimates for 1Q18. We’ll also discuss analysts’ latest recommendations, valuations, and short interest.

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3M’s stock performance since 4Q17

3M announced its 4Q17 results on January 25, 2018. 3M reported revenue growth of 9.1% for the quarter and an adjusted EPS (earnings per share) growth of 11.7%. As a result, the stock touched an all-time high of $258. Since then, 3M has fallen 12.80%. The decline was primarily due to market volatility resulting from speculation that the Fed could announce more interest rate hikes than expected in fiscal 2018. The US-China trade war and tense geopolitical conditions also contributed to the decline. General Electric (GE), Danaher (DHR), and Stanley Black & Decker (SWK) declined 15.5%, 2.30%, and 8.5%, respectively, as of April 17, 2018.

3M, which reported strong 4Q17 earnings, is expected to post strong earnings in 1Q18 and could gain some of the lost ground.

Moving averages and relative strength index

The decline in 3M’s stock price caused the stock to trade 6.10% below the 100-day moving average price of $234.33, which indicates a downward trend in the stock. However, 3M’s 14-day relative strength index of 48 suggests that the stock isn’t overbought or oversold. An RSI score below 30 indicates that a stock might be oversold, while an RSI score above 70 indicates that a stock might be overbought.

Investors can hold Stanley Black & Decker indirectly through the iShares U.S. Industrials ETF (IYJ), which has 3.8% of its portfolio invested in 3M as of April 17, 2018.

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