Sarah Patel's Avatar
published in Blogs
Jan 26, 2022

3M (MMM, $173.77)beats Q4 earnings expectations

3M posted fourth-quarter earnings of $2.31 per share, beating analysts’ expectations of $2.02 (based on Investing.com poll).

 Revenue came in at $8.61 billion, vs.  analysts’ estimate of $8.6 billion.

The company’s free cash flow of $1.5 billion was also ahead of the $1.3 billion expected by the Street.

However, operating profit margins in the fourth quarter narrowed to 18.8%, from 21.5% in the fourth quarter of 2020. Supply-chain challenges and lower manufacturing volumes were the main factors behind this decrease, eroding about 2.4 percentage points of margins.

Related Ticker: MMM

Momentum Indicator for MMM turns negative, indicating new downward trend

MMM saw its Momentum Indicator move below the 0 level on May 24, 2023. 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 95 similar instances where the indicator turned negative. In of the 95 cases, the stock moved further down in the following days. The odds of a decline are at .

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The Moving Average Convergence Divergence Histogram (MACD) for MMM turned negative on May 25, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .

MMM moved below its 50-day moving average on May 23, 2023 date and that indicates a change from an upward trend to a downward trend.

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 .

The Aroon Indicator for MMM entered a downward trend on May 25, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Bullish Trend Analysis

The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where MMM's RSI Indicator exited the oversold zone, of 34 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .

The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 59 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 .

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MMM advanced for three days, in of 311 cases, the price rose further within the following month. The odds of a continued upward trend are .

Fundamental Analysis (Ratings)

Fear & Greed

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued 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: P/B Ratio (3.500) is normal, around the industry mean (2.289). P/E Ratio (10.030) is within average values for comparable stocks, (19.618). MMM's Projected Growth (PEG Ratio) (4.244) is very high in comparison to the industry average of (1.540). Dividend Yield (0.062) settles around the average of (0.040) among similar stocks. P/S Ratio (1.632) is also within normal values, averaging (183.304).

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. MMM’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

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 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 71, placing this stock worse than average.

Notable companies

The most notable companies in this group are Honeywell International (NASDAQ:HON), 3M Company (NYSE:MMM).

Industry description

The industry is involved in value-added processes including creation of metal structures like machines and parts by cutting, bending and assembling, using various raw materials. A fabrication shop often bids on a project/job, and then builds the product if awarded the contract. Robotics and automation are making their way into the industry apparently to fill in skills gap[s19] . RBC Bearings Incorporated, Timken Company and Valmont Industries, Inc. are some of the largest metal fabrication companies in the U.S.

Market Cap

The average market capitalization across the Metal Fabrication Industry is 10.36B. The market cap for tickers in the group ranges from 723 to 127.72B. HON holds the highest valuation in this group at 127.72B. The lowest valued company is BDGY at 723.

High and low price notable news

The average weekly price growth across all stocks in the Metal Fabrication Industry was 1%. For the same Industry, the average monthly price growth was 0%, and the average quarterly price growth was 19%. PTEEF experienced the highest price growth at 130%, while EFSH experienced the biggest fall at -35%.

Volume

The average weekly volume growth across all stocks in the Metal Fabrication Industry was 5%. For the same stocks of the Industry, the average monthly volume growth was -9% and the average quarterly volume growth was 56%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 38
P/E Growth Rating: 56
Price Growth Rating: 51
SMR Rating: 57
Profit Risk Rating: 71
Seasonality Score: 18 (-100 ... +100)
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