5-Star Stocks Poised to Pop: 3M

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's business and see what CAPS investors are saying about the stock right now.

3M facts

Headquarters (Founded) St. Paul, Minn. (1902)
Market Cap $59.6 billion
Industry Industrial conglomerates
Trailing-12-Month Revenue $29.2 billion
Management Chairman/CEO George Buckley
CFO David Meline
Return on Equity (Average, Past 3 Years) 25.9%
Cash/Debt $4.9 billion / $6.2 billion
Dividend Yield 2.6%
Competitors Avery Dennison
DuPont
Johnson & Johnson

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

On CAPS, 97% of the 4,473 members who have rated 3M believe the stock will outperform the S&P 500 going forward.

Just last week, one of those bulls, fellow Fool Anders Bylund (TMFZahrim), highlighted the stock as a solid long-term selection:

32% of 3M's sales in 2011 came from products that were introduced in the past five years, and management aims for new inventions to provide 40% of revenues in the long term. CFO Dave Meline says 3M's business model is based on innovation, and I believe in that.

That's why 3M is a stock you could happily hold for the next 10 years or more.

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!

Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of and creating a diagonal call position in both 3M and Johnson & Johnson. The Fool 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.


Read/Post Comments (1) | Recommend This Article (6)

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 January 19, 2012, at 11:01 PM, SomersetSmile wrote:

    3M talks a good innovation game, but their practices have been just the opposite in recent years. It takes years of R&D new product development to go from the prototype stage to national introduction. Only 1 or 2 out of 100 potential products actually make it through the process, so you need to keep the project funnel full. But in recent years R&D at 3M had been cut way back, with less than 25% of the actual development engineers being left (just a quick look at the parking lots at the Maplewood campus shows the story). But even more problamatic has been the emphise on just trying to pick the 1 or 2 products that they think are the ones that will suceed, at the expense of the other 98% (like all the Post-It products). They have been doing early retirements, which has removed all the senior institutional memory, allowing the R&D to remake all the mistakes of past development and markets.

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