3M stock faces challenges but shows signs of improvement with CEO plan for growth

From Nasdaq MarketSite: 2025-03-01 07:33:00

3M (NYSE: MMM) has faced challenges in recent years, including sluggish sales, safety recalls, and lawsuits related to harmful chemicals. The company cut its dividend in 2024 and spun off its healthcare division as Solventum (NYSE: SOLV). Despite a small stock increase, 3M has underperformed the S&P 500 over the past five years. The company’s sales growth slowed due to rising costs and legal liabilities, but in 2024, sales stabilized, and margins improved. 3M’s new CEO plans to focus on growth markets and new product launches for 2025.

3M’s stock may be reasonably valued, but it still faces challenges with ongoing legal liabilities and a slow turnaround. The company expects organic sales to increase in 2025, and the CEO aims to accelerate product launches. While there are positive steps being taken, investors may want to wait for further progress before considering 3M as an investment opportunity. There are other companies with lower valuations and higher dividends that may be more attractive options for investors.



Read more at Nasdaq MarketSite: Is 3M Stock a Buy Now?