3M (MMM, $169.18) stock gets downgraded by RBC Capital Markets to sector perform from outperform
3M Co. shares got a rating downgrade by RBC Capital Markets.
RBC Capital Markets analyst Deane Dray lowered his rating on 3M to sector perform, from a prior rating of outperform. He also slashed his price target on the stock by 15% to $176 per share.
According to Dray, 3M’s reputation of a "defensive, high-quality industrial" is getting eroded.
3M's first quarter earnings had declined -10.8% year-over-year, and its total revenue had fallen -5%. The company had lowered its full-year earnings outlook to a range of $9.25 to $9.75 per share, down from a prior forecast of $10.45 to $10.90 per share. It had also cut its organic sales growth forecast to a range of -1% to +2% from a previous projection of 1% to 4%.
Momentum Indicator for MMM turns negative, indicating new downward trend
MMM saw its Momentum Indicator move below the 0 level on April 24, 2024. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 93 similar instances where the indicator turned negative. In of the 93 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MMM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
MMM broke above its upper Bollinger Band on April 01, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 62 cases where MMM's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
MMM moved above its 50-day moving average on April 05, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for MMM crossed bullishly above the 50-day moving average on April 09, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 20 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MMM advanced for three days, in of 286 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 188 cases where MMM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. MMM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: MMM's P/B Ratio (10.823) is slightly higher than the industry average of (2.368). P/E Ratio (10.772) is within average values for comparable stocks, (19.311). Projected Growth (PEG Ratio) (2.151) is also within normal values, averaging (1.512). Dividend Yield (0.064) settles around the average of (0.126) among similar stocks. P/S Ratio (1.594) is also within normal values, averaging (150.354).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. MMM’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock worse than average.
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High and low price notable news
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
an industrial conglomerate which manufactures and distributes consumer products such as papers, electronic gadgets and medical supplies
Industry MetalFabrication