3 M shares are still buying

 3 M shares are still buying 

3 M shares are still buying


With the markets rallying strongly since April 2020, it is tempting to think that the economic recovery is already reflected in the stock price. Following this argument means that stocks could fall given any disappointment in the economy. This may well be the case for most of the market, but not all companies were created equal. In the case of 3 M (NYSE: MM), the stock still looks good and there is potential for better sales and earnings in 2021. That's why.

How 3 M grew in the fourth quarter

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3 M's sales are boosted by OVID-19-related demand for respirator masks (safety and industry) and respirators (health), but other, more economically oriented businesses in these segments have yet to recover.

In addition, the consumer segment is also benefiting from home improvement measures, which increases demand for home care and home improvement products, but office supplies and office supplies remain weak.

Finally, the transportation and electronics segment returned to growth in the fourth quarter, but there is a lot of uncertainty about the prospects for the automotive and electronics industry in 2021. This is reflected in the wide range of forecasts for 2021, shown in the table below.

3 M game plan

It is clear that 3 M's goal in the next couple of years is to achieve a more accurate transition from income related to OVID-19 to more economically balanced income. Sales of masks, respirators and household items should slow as the pandemic subsides, but 3 M should see an improvement in its cyclical-aligned sales. This includes 3 M industrial abrasives, electrical materials, automotive aftermarket, advanced materials, and non-OVID-19 healthcare products.