What Does the Share Price Indicate for 3M Company (NYSE:MMM), 3M Company?
Let’s discuss the 3M Company (popular).NYSE:MMM). In the last few months, the company’s shares have seen a double-digit increase in share price of more than 10% on the NYSE. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. What if the stock is still a bargain price? Let’s examine 3M’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
View our latest analysis for 3M
Is 3M Still Cheap?
Great news for investors – 3M is still trading at a fairly cheap price. My valuation indicates that the stock’s intrinsic value is $179.99. This price is much higher than the current market price. This is a possible opportunity to buy at a low price. There may be an opportunity to buy again in future. This is because 3M’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, shares of the company will likely fall more than the rest, which can be a great opportunity to buy.
Are we able to expect growth from 3M
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. However, with a negative profit growth of -0.8% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for 3M. This certainty pushes the risk-return curve towards higher risk.
What Does This Mean for You?
Are you a shareholder? MMM is undervalued at the moment, but it does have a negative outlook, which can lead to greater risk. It is worth considering whether increasing your portfolio’s exposure to MMM or diversifying into other stocks may be a better option for your return and total risk.
Are you a potential investor? If you’ve been keeping tabs on MMM for some time, but hesitant on making the leap, I recommend you research further into the stock. It is now a good time to make a decision, given its current undervaluation. Be aware of the risk associated with negative growth prospects for the future.
This is why we don’t recommend investing in stocks without fully understanding the risks. 3M, for example, has 2 warning signs These are the things we believe you should know.
You can view our entire list of over if you’re not interested in 3M. 50 other stocks with a high growth potential.
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This article is by Simply Wall St. It is general in nature. Our commentary is based on historical data, analyst forecasts and other unbiased information. We do not intend to provide financial advice. This analysis does not represent a recommendation to purchase or sell any stock and it does not consider your financial goals or financial situation. We strive to deliver long-term, targeted analysis that is based on fundamental data. Please note that our analysis might not include the most recent announcements from price-sensitive companies or qualitative material. Simply Wall St does not hold any position in the stocks mentioned.
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