3M (NYSE: MMM), Carpenter Technology (NYSE: CRS), and Owens Corning (NYSE: OC) are vastly different stocks, but all three are attractive on a risk/reward basis. They each have a different investment case, so let's explore why they might suit a value investor's portfolio.

This industrial giant isn't the highest-quality company out there. After all, mediocre growth, declining margins, and costly legal issues have dogged the company in recent years, not to mention question marks around the sustainability of its dividend.

That said, improvement is on the way. First, there's more clarity on the high-profile legal issues, polyfluorinated substances (PFAS), and combat arms earplugs, and investors understand the payments needed to be made over many years. Meanwhile, management's restructuring program appears to be generating margin expansion. The bullet has been bitten, and 3M's dividend will be cut, freeing up resources to meet legal settlements, restructure the business, and invest in growth. There is also $7.7 billion in cash payments from the Solventum spinoff, and 3M retains a 19.9% stake in the company, worth about $2.3 billion at the current price.

Continue reading

Source Fool.com