Analyzing 3M’s Stock Performance since Its Q3 Earnings

In a press release on November 28, 3M (MMM) said that it would announce its fourth-quarter earnings results before the market opens on January 29. The company’s management will hold a conference call on the same day at 9:00 AM EST to discuss the results.

In this series, we’ll discuss 3M’s stock performance since its third-quarter earnings and review analysts’ revenue and earnings estimates for the fourth quarter. We’ll also discuss analysts’ latest recommendations on 3M stock.

3M announced its third-quarter results on October 23. Since then, the stock has seen a marginal increase of 1.7%. In comparison, Stanley Black & Decker (SWK) has risen ~3.0%, while Honeywell (HON) and General Electric (GE) have fallen 2.9% and 27.8%, respectively. 3M has outperformed the S&P 500 (SPY), which declined 2.8%.

3M stock has been on a declining trend since it made three downward revisions to its adjusted EPS in 2018. However, the positive developments in 3M’s business helped the stock’s performance. 3M entered into a definitive agreement to acquire M*Modal’s $10 billion technology business. The board approved the $10 billion share repurchase program. Better-than-expected fourth-quarter earnings could help boost 3M’s stock price.

As of January 25, 3M was trading 2.0% below its 100-day moving average of $199.92. If 3M manages to post better-than-expected third-quarter results, there could be a trend reversal in the stock. 3M’s 14-day relative strength index of 55 indicates that the stock isn’t overbought or oversold.