3M Company Is Approaching The Point Of Maximum Pessimism

Oct. 20, 2022 2:38 PM ET3M Company (MMM) StockMMM10 Comments
Daniel Schönberger
12.99K Followers

Summary

  • 3M Company reported mediocre quarterly results and had to lower its fiscal 2022 guidance.
  • And aside from the looming recession, litigation risks - due to earplugs and PFAS - are leading to high levels of uncertainty for the business.
  • But the declining stock price is leading to the highest dividend yield for 3M Company in the last 40 years.
  • Even when considering huge fines of $25 billion and more, the stock is still undervalued right now.

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Spencer Platt/Getty Images News

Reporting that a stock declined in the last few months is not really newsworthy, as almost every stock declined in 2022. However, 3M Company (NYSE:MMM) declined 35% year-to-date and clearly underperformed the S&P 500 (

This article was written by

12.99K Followers
My analysis is focused on high-quality companies, that can outperform the market over the long-run due to a competitive advantage (economic moat) and high levels of defensibility. Focused on European and North American companies, but without constraints regarding market capitalization (from large cap to small cap companies).My academic background is in sociology and I hold a Master’s Degree in Sociology (with main emphasis on organizational and economic sociology) and a Bachelor’s Degree in Sociology and History.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of BAYZF, MMM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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