Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, September 17, 2021

Article Excerpt

3M COMPANY, $181.49, New York symbol MMM, is still a buy for long-term gains. The company makes over 60,000 consumer and industrial goods, including Post-It notes, Scotch tape, Scotch-Brite cleaning products, Scotchguard fabric protection and Thinsulate insulation. The stock fell 5% this week after 3M warned that rising prices for raw materials such as plastic resin and wood pulp, as well as higher labour costs, will slow its profit growth in the second half of 2021. An ongoing shortage of computer chips, which is forcing automakers to cut their production, will also hurt earnings at 3M’s automotive business. However, these are short-term setbacks that should ease over the next few months. As well, 3M is raising its selling prices, which will protect its margins. The company will probably earn $10.08 a share in 2021, and the stock trades at a reasonable 18.0 times that forecast. The $5.92 dividend is secure and yields a solid 3.3%. 3M is a buy. 3M Company recent coverage: July 2021 issue …