Put 3M Stock on Your Watch List Right Now
3M (NYSE: MMM) is the kind of stock that I occasionally look at, conclude that the valuation is way too pricey for my tastes, and move on from. But the stock has really taken a beating over the past 18 months. From its 2021 peak, shares are down more than 40%. From the all-time high in early 2018, shares have tumbled about 55%.
A lackluster fourth-quarter earnings report on Tuesday sent the stock even lower. The company offered a weak outlook for 2023, saying it expects macroeconomic challenges to persist. The company expects adjusted revenue to decline by between 2% and 6%, and it sees adjusted earnings per share (EPS) coming in between $8.50 and $9. In 2022, the company reported adjusted EPS of $9.88 on a comparable basis.
3M is reducing its global manufacturing workforce by 2,500 positions to help cope with the weak demand environment. Sinking demand for disposable respirators is one reason for the weak outlook, but it's not the only reason.
Source Fool.com
