10 Best Hurricane and Natural Disaster Stocks To Buy Now

03. 3M Company (NYSE:MMM)

Number of Hedge Fund Holders: 66

3M Company (NYSE:MMM) is a diversified technology leader with a wide-ranging portfolio of products and solutions, positioning it as a critical player in hurricane and natural disaster preparedness. Established in 1902 and headquartered in Saint Paul, Minnesota, 3M Company (NYSE:MMM) operates globally, delivering essential safety and industrial products, including abrasives, adhesive solutions, and protective equipment that can be vital during natural disasters. As the company navigates significant transformation and focuses on driving organic growth, its robust financial performance makes it an attractive investment opportunity in this sector.

In the second quarter of 2024, 3M Company (NYSE:MMM) reported earnings per share (EPS) of $1.93, exceeding expectations of $1.68, representing a 39% increase year-over-year. The company’s organic revenue growth was 1%, and adjusted free cash flow reached $1.2 billion, demonstrating an impressive conversion rate of 109%. The company’s operating margins expanded by 440 basis points year-on-year to 21.6%, reflecting strong operational discipline and productivity improvements. These metrics underscore 3M Company (NYSE:MMM) capacity to manage costs effectively while generating significant cash flow.

Notably, 3M Company (NYSE:MMM) has shown resilience amidst a challenging market landscape, particularly in its electronics and industrial segments, which are poised for growth due to increasing demand for disaster recovery solutions. As the company transitions from a healthcare-centric focus, it emphasizes the need for innovation in its core product lines, aiming to rejuvenate aging products while capitalizing on emerging markets like auto electrification and industrial automation.

With 66 hedge fund holders as of Q2 2024, up from 64 in the previous quarter, investor interest in 3M remains strong. This uptick in institutional support indicates confidence in the company’s strategic direction and financial health. As 3M Company (NYSE:MMM) continues to execute its operational excellence strategy, addressing supply chain complexities, and leveraging its innovation capabilities, it is well-positioned for sustained growth. The company’s ongoing commitment to capital efficiency, including share buybacks and prudent investments, further enhances its attractiveness as a top contender in the hurricane and natural disaster stock category.