Based on the provided data and current market conditions, here's a comprehensive analysis of MMM stock:
Technical Analysis
The stock is currently trading at $149.70 in pre-market, showing a slight decline of -0.11%. The stock is currently between its Fibonacci support of $149.01 and resistance of $154.25, suggesting a potential consolidation phase.
Fundamental Strength
MMM has demonstrated impressive performance recently:
- Revenue growth of 5.8% YoY in Q4 2024
- Adjusted EPS of $1.68, beating estimates by 9.3%
- Strong free cash flow with 111% conversion rate
- 169 new products launched in 2024, up 32% YoY
Analyst Consensus
Recent analyst ratings show increasing optimism:
- 10 Strong Buys
- 3 Holds
- 1 Moderate Sell
- 2 Strong Sells
Notable upgrades include:
- Wells Fargo: Upgraded to Buy with PT $170 (Jan 22)
- B of A Securities: PT raised to $175 (Jan 22)
- JP Morgan: PT raised to $165 (Jan 22)
Growth Outlook
Management's 2025 guidance:
- Organic sales growth: 2-3%
- Adjusted EPS: $7.60-$7.90
- Operating cash flow: $5.2-$5.3 billion
Sell Signal Considerations
- Currently trading at 19.5x forward earnings, above historical average of 17x
- Potential trade policy risks under Trump administration
- Legal settlement payments continuing over coming years
Conclusion
Based on strong fundamentals, positive analyst sentiment, and technical support levels, MMM appears to be a BUY at current levels. The company's operational improvements under new CEO Bill Brown, combined with restructuring benefits and focus on innovation, suggest potential for continued growth.