Thursday, January 29, 2015

Seeking Alpha: 3M Delivers Once Again

The best antidote to an expensive stock is strong financial performance, and 3M (NYSE:MMM) continues to deliver that for its shareholders. The reporting season isn't over, but 3M's organic revenue and operating income growth will probably have it near the top of the list in the multi-industry sector and the company's performance makes management's long-term targets of 4%-6% annual organic revenue growth, double-digit EPS growth, and 20% ROIC seem credible.

While I'm a shareholder, I'm still concerned about valuation. I accept that high-quality companies will (and arguably should) trade at premiums and I look at my 3M shares as a long-term holding, but valuation always matters. I'm reluctant to sell shares in a company I really like, but it's hard for me to argue that a reader should buy 3M instead of Honeywell (NYSE:HON), Dover (NYSE:DOV), or other another high-quality industrial.

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3M Delivers Once Again

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