Is This Industrial Giant's Stock a Buy?
Industrial giant 3M's (NYSE: MMM) second-quarter earnings report left more questions than answers. On the plus side, the reopening of the economy is creating a positive backdrop for many of 3M's cyclically exposed businesses. On the other hand, 3M faces cost pressures from rising raw material prices and supply chain issues (a familiar refrain in the current earnings season). As a result, investors could be forgiven for expecting a bit more from its earnings and guidance.
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First things first, it's important to note that 3M did report a good quarter, and management raised its full-year guidance. Organic sales growth came in at a whopping 21.4%. As you can see below, the increase was broad-based across its various segments. However, that's largely down to an easy comparison with the horrific second quarter of 2020 when the COVID-19 pandemic affected markets, so don't expect 3M's revenue to grow at anything like this rate again soon.
Source Fool.com
