Jim Cramer’s Top 10 Latest Stock Picks

6. 3M Company (NYSE:MMM)

Number of Hedge Fund Holders: 66

Morgan Stanley assigned an “underweight” or sell rating to Dow stock 3M Company (NYSE:MMM), setting a price target of $125 per share. The analysts expressed concerns about ongoing weakness in consumer spending, which they believe will make it challenging for 3M Company (NYSE:MMM) to meet its organic growth targets for 2025. Jim Cramer noted that Morgan Stanley’s downgrade reflects skepticism about 3M Company (NYSE:MMM)’s ability to achieve its long-term growth goals due to the current economic environment.

“Morgan Stanley put an underweight sell rating on Dow stock 3M with a $125-per-share price target. The analysts said they see continued consumer spending softness, setting up difficulty delivering on full-year 2025 organic growth forecasts.”

3M Company (NYSE:MMM) shows a strong investment case due to its solid recent performance and positive outlook for 2024. 3M Company (NYSE:MMM) reported a strong second-quarter performance, with adjusted EPS rising 39% year-over-year to $1.93. This led 3M to increase its full-year EPS guidance to $7.00 to $7.30 per share, reflecting confidence in its operational improvements. 3M Company (NYSE:MMM)’s operational efficiency is evident from its adjusted operating income margin, which improved to 21.6% from 17.2% a year ago, thanks to effective price management and cost control.

Even though overall sales declined by 0.5% due to weaker demand in some areas, 3M Company (NYSE:MMM) generated significant free cash flow of $1.2 billion and made strategic exits from high-risk businesses like PFAS manufacturing. Looking forward, 3M Company (NYSE:MMM)’s focus on innovation in health care and industrial solutions, along with its commitment to R&D and strategic acquisitions, positions it well for future growth.