Why 3M Is Poised to Outperform
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 has earned a coveted five-star ranking.
With that in mind, let's take a closer look at 3M, and see what CAPS investors are saying about the stock right now.
3M facts
Headquarters (founded) | St. Paul, Minn. (1902) |
Market Cap | $62.9 billion |
Industry | Industrial conglomerates |
Trailing-12-Month Revenue | $29.6 billion |
Management | Chairman/CEO Inge Thulin CFO David Meline |
Return on Equity (average, past 3 years) | 26.7% |
Cash/Debt | $5.0 billion / $6.4 billion |
Dividend Yield | 2.6% |
Competitors | Avery Dennison DuPont Johnson & Johnson |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 4,583 members who have rated 3M believe the stock will outperform the S&P 500 going forward.
Just last month, one of those bulls, JohnCLeven, succinctly summed up the bull case for our community:
[3M] is like a coiled spring. For the past 8 years, the stock price has remained stagnant, while the intrinsic value keeps growing and growing. Like clockwork, [3M's] return on invested capital comes [is] consistently around 20% while its weighted cost of capital comes in around 6%. ... [3M's] price will eventually have to catch up to the fundamentals. Outperform.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a perfect five-star rating, 3M may not be your top choice.
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The article Why 3M Is Poised to Outperform originally appeared on Fool.com.
Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of Johnson & Johnson. Motley Fool newsletter services recommend Johnson & Johnson and 3M Company. 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 Motley Fool has a disclosure policy.
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