3M: Not as safe as you first think

Trending News 🌧️

In our May 2022 article “3M ($NYSE:MMM): Not as safe as you first think,” we presented several reasons that made our outlook bearish for the near- and mid-term. Specifically, we noted that the company’s recent string of acquisitions could lead to integration issues, that it was facing headwinds in several of its key markets, and that its share price appeared to be overvalued. While 3M has been a solid company over the years, we believe that there are better opportunities out there for investors.

Share Price

3M COMPANY’s stock took a hit on Thursday after media reports surfaced alleging that the company’s products are not as safe as consumers first thought. 3M COMPANY opened at $113.0 and closed at $112.3, down by 1.7% from previous closing price of 114.3. These reports are a major blow to the company, which has long been considered a trusted name in the safety and security industry. If these allegations are true, it could mean big trouble for 3M COMPANY.

VI Analysis

3M COMPANY is a publicly traded conglomerate with a diversified business portfolio. The company’s fundamentals reflect its long term potential, but there are some risks to consider before investing. Based on VI Risk Rating, 3M COMPANY is a medium risk investment in terms of financial and business aspects.

However, the company’s business model is sound and it has a strong track record of delivering shareholder value. The potential risks to consider are the company’s exposure to macroeconomic conditions and its dependence on a few key customers.

Summary

3M stock has been under pressure in recent months as the company has been hit by a series of negative headlines. The company has been embroiled in a lawsuit over its allegedly defective earplugs, which have been linked to hearing loss and tinnitus. 3M has also been accused of selling a hazardous chemicals to the U.S. military, and the company is facing scrutiny for its handling of the coronavirus pandemic. With all of this negative publicity, it’s no wonder that 3M’s stock price has taken a hit. But is the company really as risky as it seems? Here’s a closer look at 3M’s recent problems and whether or not the company is still a safe investment. The earplugs lawsuit is the biggest threat to 3M right now. The company is facing hundreds of millions of dollars in potential liability, and the case is still in its early stages. If 3M is found liable, the damages could be even higher.

The military contract issue is also a serious concern, but it’s not clear how much financial exposure 3M has. The coronavirus pandemic has also caused problems for 3M. The company’s sales have been hurt by the slowdown in global economic activity, and 3M’s stock price has come under pressure as a result. So, is 3M still a safe investment? That depends on your risk tolerance. The company is facing some serious challenges, but it also has a strong balance sheet and a diversified business. If you’re willing to take on some extra risk, 3M could still be a good investment. But if you’re looking for a safe and conservative stock, there are better options out there.