3M (NYSE:MMM) stock remains in a correction after falling 10% from its high for the year. Focus now turns to the upcoming earnings report, which should offer hints about the turnaround being led by CEO Bill Brown.
3M Earnings to Showcase Turnaround Measures 3M, the top American manufacturer, has been going through a turnaround process and there are signs that it is working out. As a result, management continued returning cash to its investors.
4 billion through buybacks and dividends, with the board being on track to hit $10 billion through 2027. The company also hiked its target for the year, helped by the ongoing innovation that saw it launch 92 new products.
It plans to launch 350 new products this year. Read Also: Realty Income Recovers Slowly, But Dividend Aristocrats Still Face Real Risks Wall Street analysts are optimistic that its revenue growth continued in the third quarter.
The upcoming results will also provide hints on its cost-cutting strategy. A key risk that 3M stock is facing is that it is fairly overvalued considering that it is experiencing single-digit revenue growth.
3M Stock Price Technical Analysis 3M chart by TradingView The daily chart shows that 3M shares have been in a downward trend in the past few months, falling from $184 in August to a low of $160 earlier this month. 3M has settled above the 200-day Exponential Moving Average (EMA).
It has also formed a double-bottom pattern, which is a common bullish reversal sign in technical analysis. Therefore, these patterns suggest that the stock will bounce back after earnings.
If this happens, the key level to watch will be at $170, its highest point in September. A drop below the support level of $160 will invalidate the bullish outlook.
