Why 3M Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, diversified technology company 3M (NYSE: MMM  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at 3M, and see what CAPS investors are saying about the stock right now.

3M facts

 

 

Headquarters (founded)

St. Paul, Minn. (1902)

Market Cap

$62.9 billion

Industry

Industrial conglomerates

Trailing-12-Month Revenue

$29.6 billion

Management

Chairman/CEO Inge Thulin

CFO David Meline

Return on Equity (average, past 3 years)

26.7%

Cash/Debt

$5.0 billion / $6.4 billion

Dividend Yield

2.6%

Competitors

Avery Dennison (NYSE: AVY  )

DuPont (NYSE: DD  )

Johnson & Johnson (NYSE: JNJ  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 4,583 members who have rated 3M believe the stock will outperform the S&P 500 going forward.

Just last month, one of those bulls, JohnCLeven, succinctly summed up the bull case for our community:

[3M] is like a coiled spring. For the past 8 years, the stock price has remained stagnant, while the intrinsic value keeps growing and growing. Like clockwork, [3M's] return on invested capital comes [is] consistently around 20% while its weighted cost of capital comes in around 6%. ... [3M's] price will eventually have to catch up to the fundamentals. Outperform.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a perfect five-star rating, 3M may not be your top choice.

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Read/Post Comments (1) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 10, 2012, at 2:49 PM, iatech wrote:

    other Fool expert says avoid 3M. Here you are saying it will outperform. Really dont know who to believe any more. Just check the other article in under MMM stock details in yhoo finance

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