Near a 3-Year Low, Is 3M a Buy?
Formerly known as Minnesota Mining and Manufacturing, industrial icon 3M (NYSE: MMM) has lost roughly a third of its value over the past three years. The stock is only down about 7% or so in 2020, so there's more to that decline than the 2020 COVID-19 pandemic.
Trading near a three-year low, is 3M worth buying today? Here's what you need to know to decide.
Valuation can be kind of tricky at times, particularly for economically sensitive companies like industrials. Indeed, a company like 3M will see earnings decline during a recession (like the one that started in February), but its long-term earnings power will largely remain intact. The problem is that demand has simply fallen off during the downturn. So the price-to-earnings ratio may not be the best gauge of valuation for 3M.
Source Fool.com
