AroniSmartInvest In Action: 3M Sustains Performance Momentum

AroniSmartInvest In Action: 3M News and Performance Momentum

Investing
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

On April 14, 2017 AroniSmartInvest In Action picked 3M (NYSE: MMM) as one of the most promising stocks. 3M (NYSE: MMM) had been on roll for the last months. At the moment AroniSmartInvest in Action™ had included the stock on the list to watch for potential upside opportunities. has been on roll for the last months. AroniSmartInvest in Action™ has included the stock on the list to watch for potential upside opportunities.

Over the last 12 months as of April 14, 2017, 3M stock had raised from $163.17 to $193.50, or 18.59%, with the P/E ratio of 23.2 and P/B ratio of 10.95.
Since then, 3M stock has risen to $234.65, or 21%, which means that in a year the stock has risen by 38%.

The company has increased revenue in all of its business units in the last quarter, whether in electronics, energy and other business across the World. As explained in April 2017, multiple factors appear to have contributed to such performance.

On Feb 7, 2017, 3M hiked its quarterly dividend by 6% to $1.175. With the news surrounding the company's operations, AroniSmartInvest in Action estimated that the stock was expected to sustain its momentum.

First, 3M settled the patent case against Xpel Technologies Corp. With the settlement Xpel TEchnologies started paying licensing and royalty fees to 3M on the majority of its products.

Xpel Technologies Corp business, like 3M, includes selling automotive paint protection films to clients or resellers. Xpel Technologies had been selling competing clear automobile paint protection film products on the market for years. But 3M was awarded a patent in 2014 and filed its lawsuit in December 2015.

Second, 3M announced in late March 2017, that it was getting out of the majority of the cellulose block business, and instead will focus on the finished sponge business, to fight off increased competition in various international markets. Then, on April 3, 2017, 3M filed a patent infringement lawsuit in the District of Delaware against Amphenol Corporation, for data transmission cable products.

On April 4, 2017 3M confirmed that 3M had “a binding contract” to sell a 206-acre Oakdale property. The property is bordered by Interstate 694, Ideal Avenue, the Slumberland campus and the Olson Lakes Estates development. According to 3M, the company is selling the land because “it didn’t fit into our strategic plan,”. The land would allegedly be developed for housing and public amenities.

On April 11, 2017, 3M sued K2 Concepts and China-based Phoenix Automotive Refinishing in the Central District Court of California for allegedly violating seven 3M patents and several trademarks and copyrights.

3M Company operates through five technology segments: Industrial, Safety and Graphics, Health Care, Electronics and Energy, and Consumer. The company reported third quarter EPS of $2.33, up from $2.12 a year ago, against expected EPS of $2.21.
Expected EPS for the year is $9.00 to $9.10, up from 3M prior guidance of $8.80 to $9.05.

Sign up via our free email subscription service to receive notifications when new information is available.

Ads Banners