Why 3M Company (MMM) Is Gaining On Earnings Optimism Now

We recently compiled a list of the 5 Stocks Gaining On Earnings Optimism. In this article, we are going to take a look at where 3M Company (NYSE:MMM) stands against the other stocks.

The earnings season continues to move stocks higher as big names deliver their quarterly performance reports one by one. As a result, analysts are updating their models with the latest numbers, resulting in rating changes for these companies.

As the US indices struggle to find a specific direction in today’s trading, some stocks are clearly on an upward trajectory. We unearthed these stocks by looking at the recent earning reports, analyst upgrades, and the earnings calendar. To come up with the list of 5 stocks gaining on analyst expectations, we only considered stocks with a market cap of at least $75 billion.

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3M Company (NYSE:MMM)

3M Company is a technology services provider that operates through safety & industrial, transportation & electronics, and consumer segments. Financial services firm Wells Fargo’s analysts upgraded 3M from Equal Weight to Overweight and raised its target price from $140 to $170.

MMM received an upgrade because analysts believe that the company is expected to report increasing profits as well as increased shareholder value through buybacks. According to the analysts, the company is well-positioned to start seeing the rewards of the biggest restructuring plan in its history. If sales gain momentum, the company will thrive. If they don’t, the improved structure will help it grow profits. In both cases, investors should be able to see a better stock performance than in the past.

Taking a look into the Q4 earnings of the company announced earlier this week, adjusted EPS came in at $1.68 which was higher than Wall Street analysts’ estimates of $1.54. Management estimates demonstrate a 0.5% to 1.5% growth in sales with an adjusted EPS of $7.60 to $7.90 for the next year.

Overall MMM ranks 5th on our list of the stocks that are gaining on earnings optimism. While we acknowledge the potential of MMM as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as MMM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.