Bull’s Eye Report: 3M (MMM)

In the conglomerate sector, this stock is a standout.

   

At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company Symbol Industry Stock Rating YTD% Gain S.T.
Stop Loss
3M Co. MMM Industrial Conglomerates 8.4 +15.37% $107.60


Why We Like The Stock:

3M Co. (MMM) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. It’s been a good year so far for Industrial Conglomerates like General Electric (GE), Boeing (BA), Danaher  (DHR), and MMM. MMM has been in a strong uptrend since October of 2011, making higher highs and higher lows on a weekly basis.

Turning to more recent price action, the stock hit highs of $113.23 on June 18 before pulling back to current prices at $109.45. The stock has solid support at around $108, which makes its current price an attractive entry. With a little upward momentum, MMM could quickly break above its short-term moving averages and navigate back to its mid-June highs rather quickly. With a tight stop at $107.60, we would be buyers here and expect it to continue on higher.

We Would Be Buyers:

At the current price (~$109.45).

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Company Profile:

3M Company (3M) is a diversified technology company with a presence in the industrial and transportation; health care; consumer and office; safety, security and protection services; display and graphics, and electro and communications businesses. 3M manages its operations in six business segments: Industrial and Transportation; Health Care; Consumer and Office; Safety, Security and Protection Services; Display and Graphics, and Electro and Communications. 3M products are sold through a number of distribution channels, including directly to users and through wholesalers, retailers, jobbers, distributors and dealers in a range of trades in a number of countries worldwide. In April 2012, it acquired CodeRyte Inc. In September 2012, it acquired the business of Federal Signal Technologies Group (FSTech) from Federal Signal Corporation. On Nov. 28, 2012, the Company acquired Ceradyne, Inc.

Stock Rating:

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

Disclosure:

At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.

 

3M – Last 3 Months

 Bull's Eye Report: 3M (MMM)

3M – Last 12 Months

 Bull's Eye Report: 3M (MMM)

3M – Last 5 Years

 Bull's Eye Report: 3M (MMM)


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