As billions in legal costs loom, 3M (MMM) has emerged as the worst-performing stock on the Dow. However, technical analysis suggests that there may be a glimmer of hope for the struggling stock.
The Moving Average Convergence Divergence (MACD) for MMM turned positive on March 28, 2023. This is a bullish signal that indicates the potential for an upward trend in the stock's price.
To get a better understanding of what this means for MMM, we can look at past instances where the stock's MACD turned positive. According to historical data, the stock continued to rise in 25 of 45 cases over the following month. This means that the odds of a continued upward trend are approximately 56%.
It's important to note that while technical analysis can provide insights into the direction of a stock's price, it's not a guaranteed predictor of future performance. Other factors, such as market conditions and company-specific news, can also have a significant impact on a stock's price.
In the case of MMM, the looming legal costs are a major concern for investors. The company has already set aside billions of dollars to cover these costs, and there is a risk that they could have a significant impact on the company's financial performance.
Despite these challenges, the positive MACD signal for MMM suggests that there may be some hope for the stock in the short term. Investors should keep a close eye on the stock's performance in the coming weeks and months to see if this trend continues or if other factors come into play.
MMM saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on May 25, 2023. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 47 instances where the indicator turned negative. In of the 47 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on May 24, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on MMM as a result. In of 95 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
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 30, 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.
The RSI Oscillator 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 demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
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 .
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 (3.464) is normal, around the industry mean (2.336). P/E Ratio (9.921) is within average values for comparable stocks, (19.609). MMM's Projected Growth (PEG Ratio) (4.201) is slightly higher than the industry average of (1.567). Dividend Yield (0.062) settles around the average of (0.039) among similar stocks. P/S Ratio (1.615) is also within normal values, averaging (188.408).
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.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
an industrial conglomerate which manufactures and distributes consumer products such as papers, electronic gadgets and medical supplies
A.I.dvisor indicates that over the last year, MMM has been closely correlated with HON. These tickers have moved in lockstep 68% of the time. This A.I.-generated data suggests there is a high statistical probability that if MMM jumps, then HON could also see price increases.