3M (MMM) is the best Dow Jones stock Tuesday after the Post-it Note maker beat top- and bottom-line expectations for its fourth quarter and issued a positive outlook for 2025.
In the three months ending December 31, 3M's revenue increased 0.1% year over year to $6 billion. Its earnings per share (EPS) declined 1.2% from the year-ago period to $1.68.
The results beat analysts' expectations. Wall Street was anticipating revenue of $5.8 billion and earnings of $1.66 per share, according to Barron's.
"Our fourth quarter capped a year of strong results as we returned to positive organic revenue growth in the full year," said 3M CEO Bill Brown in a statement. "We are carrying this momentum forward and are confident in our ability to deliver our 2025 guidance."
For fiscal 2025, 3M expects to achieve EPS in the range of $7.60 to $7.90, representing growth of 4.1% to 8.2% from 2024 and right around analysts' expectations for earnings of $7.78 per share.
Is 3M stock a buy, sell or hold?
3M has turned in a strong performance on the price charts over the past 12 months, up 38% on a total return basis (price change plus dividends) vs the S&P 500's 26% gain. And analysts are bullish on the blue chip stock.
According to S&P Global Market Intelligence, the consensus recommendation among the 19 analysts following the stock that it tracks is a Buy.
However, analysts' price targets have had a tough time keeping up with 3M's surging share price. Indeed, the average price target of $146.07 is right around where the large-cap stock trades today.
Financial services firm Deutsche Bank is one of the more bullish outfits on MMM stock with a Buy rating and $158 price target. The group also has 3M as one of its top stock picks for Q1 2025.
"We view MMM as a unique self-help story with new CEO Bill Brown being the catalyst for change that should elevate the company back to its historical prestigious status as among the best-in-class MI/EE companies," says Deutsche Bank analyst Nicole DeBlase.
She adds that 3M's upcoming Investor Day on February 26 should be "a positive catalyst where Bill Brown lays out his multi-year improvement plan for the company, and we expect this to result in a multi-year positive earnings revision cycle."
