uploads/2019/04/stock-market-pic-3.jpg

3M’s Stock Performance since Its Q4 Earnings

By

Updated

3M’s first-quarter earnings

In a press release on April 21, 3M (MMM) said that it will announce its first-quarter earnings results before the market opens on April 25. The company’s management will hold a conference call on the same day at 8:00 AM EST to discuss the results.

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

Article continues below advertisement

3M’s stock performance

3M announced its fourth-quarter earnings on January 29. Since then, the stock has risen ~11.4%. In comparison, Stanley Black & Decker (SWK), Honeywell (HON), and General Electric (GE) have risen 20.2%, 21.2%, and 9.0%, respectively. Although 3M has underperformed a few of its peers, it has marginally outperformed the S&P 500 (SPY), which has risen 11.1% during the same period.

3M stock has moved up due to the positive developments in its business. 3M acquired M*Modal and entered into several collaborations, which will likely drive its future growth. Declining sales in a few of 3M’s reporting segments, the strong dollar movement, and the increase in raw material prices pose a challenge. Analysts seem to be cautious about the stock. 3M downgraded its earnings three times in 2018. If 3M can outperform analysts’ expectations, then the stock could see an upward trajectory.

Moving averages

As of April 23, 3M was trading 8.5% above its 100-day moving average of $202.35. 3M’s 14-day relative strength index of 68 indicates that the stock is moving closer to the overbought position and could trigger a sell-off.

Advertisement

More From Market Realist