Trefis expects 3M’s (NYSE:MMM) Safety & Industrial Revenues to grow from around $11 billion in 2020 to over $12 billion in 2021 and $12.5 billion in 2022.
The economic recovery following Covid-19 should result in higher demand for 3M’s industrial products.
3M stock has been a relative underperformer, rising by just about 25% over the last 12 months, compared to a return of 35% on the S&P 500. This is partly due to investor concerns over lawsuits surrounding environmental issues related to the company’s manufacturing plants. While revenue growth is likely to pick up in 2021, we think the stock looks fully priced at current levels of around $195 per share.
Looking for a balanced portfolio to invest in? Here’s a high-quality portfolio to beat the market, with over 150% return since 2016, versus 85% for the S&P 500. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.