- 3M stock is outperforming the other 29 Dow Jones stocks YTD.
- 3M shares fell in value by two-thirds between early 2018 and late 2023.
- Analysts have upgraded 3M now that lawsuits have been settled.
- Weekly chart shows bullish break above five-year resistance trendline.
After years of underperformance, 3M (MMM) is now the best-performing stock in the Dow Jones Industrial Average (DJIA) year to date. By coming to terms with a number of high-profile lawsuits, cutting its dividend for the first time in more than half a century and demonstrating increased profitability in quarterly results in July, 3M stock now appears to be in a technical uptrend for the first time since 2018.
3M stock’s 47% gain this year has led the DJIA to a 10.3% gain so far, although heavier index weightings for Goldman Sachs (GS) and American Express (AXP) have played an outsized role. Despite broad market turbulence at the beginning of August, the DJIA reached an all-time high last week.
3M stock news
3M has performed so well in 2024 due to its recovery from a historic multiyear sell-off. MMM shares cascaded off all-time highs above $217 at the start of 2018 to a decade-long low of $71.35 in October 2023.
A great weight has been lifted off the shoulders of 3M shareholders this year as management was finally able to agree to terms with plaintiffs regarding defective combat earplugs and PFAS chemicals in drinking water — the latter of which are often termed “forever chemicals”.
After 65 years of increasing its dividends, 3M management bit the bullet and cut its quarterly payout from $1.25 to $0.70 per share earlier this year in order to fund its settlements. In June the company agreed to pay over $10 billion over a 13-year period to settle lawsuits with US municipal water utilities over PFAS cleanup.
The recent rally was aided by a 15% consensus beat on second-quarter EPS in late July coupled with a $426 million upside surprise to revenue.
Analysts quickly piled on with upgrades to MMM. Deutsche Bank raised its outlook to Buy and boosted its price target from $100 to $150. Bank analysts said they had confidence in the growth strategy of new CEO Bill Brown.
“We look for growth to continue in 2025, as the company benefits from cost reductions, and are boosting our preliminary adjusted EPS estimate to $7.65 from $7.50”, wrote Argus analyst John Eade at the time.
In mid-August BMO Capital Markets added 3M to its list of high-quality stocks with plentiful cash on the balance sheet, above-average return on equity and low earnings growth volatility.
3M stock forecast
Not many observers have noticed that 3M stock has now clearly taken out a significant five-year resistance point. Since the January 2018 all-time high, this trendline has been descending with fury. But August saw the first break above that trendline, which should give traders confidence that the current rally will have legs.
3M is likely to reach the $150s at the very least this year. Many analysts view this region, where there is prior support, as a short-term price target. However, the $170 price level seems like a good bet as well. That is where a brief recovery found resistance on the way down in the summer of 2021.
MMM weekly stock chart
The daily chart below gives us some idea of support points. The August 5 marketwide sell-off stopped just below $120, and the 50-day Simple Moving Average (SMA) glides above $115.50. The swift rally this year will need some period of consolidation before higher support levels become evident.
MMM daily stock chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
![AUD/USD trims losses to retake 0.6700 after Australian GDP, China PMI](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/AUDUSD/australian-currency-23690700_XtraSmall.jpg)
AUD/USD trims losses to retake 0.6700 after Australian GDP, China PMI
AUD/USD trims losses to retake 0.6700 in the Asian session on Wednesday. The Aussie rebounds after mixed Australian Q2 GDP data while the upbeat Australian PMI and US Dollar weakness also support the pair, despite broad risk-aversion and poor China's Services PMI data.
![USD/JPY holds the rebound near 145.50 despite risk-off flows](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/USDJPY/japanese-yens-7972406_XtraSmall.jpg)
USD/JPY holds the rebound near 145.50 despite risk-off flows
USD/JPY is trying hard to sustain the bounce near 145.50 in Asian trading on Wednesday, as the US Dollar keeps losses even though risk sentiment sours amid concerns over a potential US 'soft-landing'. The focus shifts to the US jobs data.
![Gold price remains capped below $2,500 on firmer US Dollar](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/Gold_Bar_XAU_Precious_Metal_XtraSmall.jpg)
Gold price remains capped below $2,500 on firmer US Dollar
The Gold price (XAU/USD) bounces off the multi-day lows but remains below the $2,500 barrier amid the renewed bid bias in the US Dollar (USD) on Wednesday. However, the ongoing geopolitical risks and imminent Federal Reserve (Fed) rate cuts might underpin the yellow metal in the near term.
![Ethereum exchange reserve shoots up by 163K ETH, here's what other on-chain metrics indicate](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Ethereum/Ethereum_Coins_XtraSmall.jpg)
Ethereum exchange reserve shoots up by 163K ETH, here's what other on-chain metrics indicate
Ethereum (ETH) is down over 2% on Tuesday following an indication of selling pressure due to an uptick in its exchange reserve. However, other on-chain metrics indicate mixed investor sentiment amid ETH's price consolidation.
![Week ahead: US labour data and the BoC rate announcement in focus](https://editorial.fxstreet.com/images/Macroeconomics/EconomicIndicator/Employment/NFP/working-america-gm173864680-9188844_XtraSmall.jpg)
Week ahead: US labour data and the BoC rate announcement in focus
With US Federal Reserve Chair Jerome Powell’s recent speech at the Jackson Hole Symposium confirming that it is time to begin easing policy as well as underlining the importance of the jobs market, this week’s jobs data may help determine how the Fed approaches its easing cycle.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.