3M’s stock performance
As of November 21, 3M (MMM) stock is trading well below its high of $258.7. On a year-to-date basis, 3M stock has declined 15.6%. The stock has underperformed the broader market S&P 500 (SPY) and Honeywell (HON), which fell 0.9% and 2%, respectively. However, 3M has still managed to outperform General Electric (GE) and Stanley Black & Decker (SWK), which have declined 55.2% and 26%, respectively.
3M stock has been under pressure since February. The trade war between China and the US is one of the major reasons why the stock prices declined and raw material costs increased. 3M made a downward revision to its EPS in the first three quarters in 2018. In the first quarter, 3M revised its adjusted EPS to $10.20–$10.45—compared to the earlier guidance of $10.20–$10.7. In the second quarter, 3M lowered its adjusted EPS guidance to $10.20–$10.45. In the third quarter, 3M lowered the fiscal 2018 EPS to $9.90–$10.00. The downward revision didn’t sit well with investors.
Moving average and RSI
The decline in 3M stock caused the stock to trade 2.5% below the 100-day moving average price of $203.86. However, 3M’s 100-day moving average price has declined from $237 to the current price, which indicates a declining trend in the stock. 3M’s 14-day RSI (relative strength index) of 49 suggests that the stock isn’t overbought or oversold. An RSI of 30 and below suggests that the stock temporarily moved into an “oversold” position, while an RSI of 70 and above indicates that the stock temporarily moved into an “overbought” position.