3M (MMM) is the best Dow Jones stock Tuesday after the Post-it Note maker beat top- and bottom-line expectations for its fourth quarter and issued a positive outlook for 2025.
In the three months ending December 31, 3M's revenue increased 0.1% year over year to $6 billion. Its earnings per share (EPS) declined 1.2% from the year-ago period to $1.68.
The results beat analysts' expectations. Wall Street was anticipating revenue of $5.8 billion and earnings of $1.66 per share, according to Barron's.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"Our fourth quarter capped a year of strong results as we returned to positive organic revenue growth in the full year," said 3M CEO Bill Brown in a statement. "We are carrying this momentum forward and are confident in our ability to deliver our 2025 guidance."
For fiscal 2025, 3M expects to achieve EPS in the range of $7.60 to $7.90, representing growth of 4.1% to 8.2% from 2024 and right around analysts' expectations for earnings of $7.78 per share.
Is 3M stock a buy, sell or hold?
3M has turned in a strong performance on the price charts over the past 12 months, up 38% on a total return basis (price change plus dividends) vs the S&P 500's 26% gain. And analysts are bullish on the blue chip stock.
According to S&P Global Market Intelligence, the consensus recommendation among the 19 analysts following the stock that it tracks is a Buy.
However, analysts' price targets have had a tough time keeping up with 3M's surging share price. Indeed, the average price target of $146.07 is right around where the large-cap stock trades today.
Financial services firm Deutsche Bank is one of the more bullish outfits on MMM stock with a Buy rating and $158 price target. The group also has 3M as one of its top stock picks for Q1 2025.
"We view MMM as a unique self-help story with new CEO Bill Brown being the catalyst for change that should elevate the company back to its historical prestigious status as among the best-in-class MI/EE companies," says Deutsche Bank analyst Nicole DeBlase.
She adds that 3M's upcoming Investor Day on February 26 should be "a positive catalyst where Bill Brown lays out his multi-year improvement plan for the company, and we expect this to result in a multi-year positive earnings revision cycle."
Related Content
-
It Just Got More Expensive to Get Into a United LoungeUnited Airlines announced a new tiered membership scheme for United Club, which gets you into airport lounges.
-
E-ZPass Scam Texts are Still Going Around. Here's What to Look Out ForScammers have been sending fake texts about E-ZPass for over a year. Know what to look out for and what to do.
-
Social Security Fairness Act: Five Financial Planning Issues to RevisitMore money as a public-sector retiree is great, but there could be unintended consequences with taxes, Medicare and more if you're not careful.
-
Social Security Warning: Five Missteps Too Many Women MakeClaiming Social Security is complicated, and for women the stakes are high. What you don't know can cost you, so make sure you do know these five things.
-
To Buck the Third-Generation Curse, Focus on the Family StoryThe key is to motivate the next generations to contribute to the family business in a productive way. You can look to Lawrence Welk's family as a prime example.
-
Walmart's Transformative Ways Spark a 100,000% Stock ReturnWalmart's strategic store expansion and relentless cost-cutting have catapulted its share price over the years.
-
20 Ways to Clean Up Your Finances This SpringSpring cleaning is therapeutic and stops costly problems from building up around the home. Why not tackle the dusty corners of your finances at the same time?
-
How Roth Accounts Can Ease Your Tax Burden in RetirementStrategic Roth IRA conversions can set you up for tax-free income in retirement and a tax-free inheritance for the people you love.
-
Are You a High Earner But Still Broke? Five Fixes for ThatIf you're a HENRY (a higher earner, not rich yet) but feel like you still live paycheck to paycheck, there are steps you can take to get control of your financial future.
-
Tax Diversification: Smart Ways to Preserve Your Nest EggA long and active retirement may be costly — and may even bump you into a higher tax bracket. Paying some taxes on your savings now could be the answer.
