4-Star Stocks Poised to Pop: 3M

Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Scotch tape and Post-it Notes maker 3M (NYSE: MMM  ) has earned a respected four-star ranking.

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

3M facts

Headquarters (Founded) St. Paul, Minn. (1902)
Market Cap $62.6 billion
Industry Industrial conglomerates
Trailing-12-Month Revenue $26.66 billion
Management Chairman/CEO George Buckley
CFO Patrick Campbell
Return on Equity (Average, Past 3 Years) 29.5%
Dividend Yield 2.4%
Competitors Avery Dennison (NYSE: AVY  )
DuPont (NYSE: DD  )
Johnson & Johnson (NYSE: JNJ  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 97% of the 4,228 members who have rated 3M believe the stock will outperform the S&P 500 going forward. These bulls include All-Star mrindependent, who is ranked in the top 2% of our community, and TheSmelloscope.

Late last year, mrindependent followed the lead of the Mad Money maven and got bullish on 3M: 

Cramer says this company will benefit from weakness in the US dollar. I agree. I also note that valuation is attractive given the stability and strength of this company, which also has the proven ability to continue growing sales.

Fools remain attracted to 3M's wide diversification and rock-solid financials. In fact, 3M's three-year average return on equity (29.5%) even tops that of rivals Avery Dennison (-3.8%), DuPont (27.8%), and Johnson & Johnson (27.1%), as well as other large conglomerates like General Electric (NYSE: GE  ) (12.4%) and Textron (NYSE: TXT  ) (3.8%).

CAPS member TheSmelloscope expands:

I'm impressed by the consistency of this company. Even during the recession they were able to keep turning a decent profit. And they didn't cut their dividend. ... It seems 3M is more effectively managed than others in the industry.

Even aside from its good looking numbers ... there are plenty of practical things to love about 3M. For example, they're everywhere. In fact, they make 55,000 different products. Yes. That's right. 55,000. ...

Yet even with so much success they keep pushing themselves. They have a passion for inventing. ...

One final thing I love about 3M is their CEO George Buckley. He seems like a thoughtful and very intelligent guy. In addition, he's a very serious scientist with several patents to his name. Pretty cool!

What do you think about 3M, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 3M and Johnson & Johnson are Motley Fool Inside Value picks. Johnson & Johnson is also a Motley Fool Income Investor choice, and Motley Fool Options has recommended a diagonal call position on it. The Fool owns shares of Johnson & Johnson and Textron. Motley Fool Alpha owns shares of Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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