4-Star Stocks Poised to Pop: 3M
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, diversified technology company 3M (NYS: MMM) has earned a respected four-star ranking.
With that in mind, let's take a closer look at 3M's business and see what CAPS investors are saying about the stock right now.
3M facts
Headquarters (Founded) | St. Paul, Minn. (1902) |
Market Cap | $61.8 billion |
Industry | Industrial conglomerates |
Trailing-12-Month Revenue | $28.6 billion |
Management | Chairman/CEO George Buckley |
Return on Equity (Average, Past 3 Years) | 27.6% |
Cash/Debt | $4.5 billion / $5.6 billion |
Dividend Yield | 2.5% |
Competitors | Avery Dennison (NYS: AVY) |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 4,287members who have rated 3M believe the stock will outperform the S&P 500 going forward. These bulls include JPAKolypse86 and SeanFlynn1.
In June, JPAKolypse86 tapped 3M as great way to get defensive: "Low beta large cap conglomerates should help shore up your portfolio for the coming storm."
Over the next five years, 3M is even expected to grow its bottom line at a solid rate of 13% annually. That's faster than rivals like Avery Dennison (7%), DuPont (10%), and Johnson & Johnson (6%).
CAPS member SeanFlynn1 expands on the 3M outperform argument:
Another stock that you can safely hold forever. Everything that 3M does, it does very well. It has plenty of cash to keep raising its dividend annually, plenty of room to grow the business, and once growth slows the yield will only continue to increase. You can't lose long term with 3M.
What do you think about 3M, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of 3M and Johnson & Johnson, as well as creating a diagonal call position on Johnson & Johnson. The Fool owns shares of Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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