Is 3M Stock a Buy Before February 26?

As 3M Company (NYSE: MMM) prepares for its Investor Day presentation on February 26, investors are wondering if the stock is a buy before the event. With a market cap of $76.8 billion and an enterprise value of $83.37 billion, 3M has seen its share price increase by 31.02% in the last 52 weeks. The company's beta is 0.99, indicating that its price volatility has been similar to the market average. However, with a short interest of 6.50 million shares, representing 1.19% of the outstanding shares, there is some concern among investors.



3M's recent financial performance has been strong, with adjusted EPS from continuing operations of $1.98 in the third quarter of 2024, up 18% year-on-year. The company's adjusted operating income margin expanded to 23.0%, an increase of 1.4 percentage points from the same period last year. Additionally, 3M returned $1.1 billion to shareholders via dividends and share repurchases in the quarter. The company's net cash position stands at -$6.57 billion, or -$12.07 per share, while its book value per share is $8.52.



Looking ahead, 3M has raised its full-year 2024 adjusted earnings expectations to $7.20 to $7.30 from $7.00 to $7.30. The company's adjusted total sales growth is now expected to be around 1%, with adjusted organic sales growth of around 1%. However, some analysts have expressed concerns about the company's ability to maintain its strong performance in the face of increasing competition and potential economic headwinds.



In conclusion, 3M's strong financial performance and dividend payout make it an attractive investment option for income-oriented investors. However, the company's high short interest and potential challenges in maintaining its growth momentum may give pause to more risk-averse investors. As the company prepares for its Investor Day presentation on February 26, investors will be watching closely for any new insights or guidance on 3M's future prospects. Ultimately, the decision to buy or sell 3M stock will depend on each investor's individual risk tolerance and investment goals.