Having owned 3M (NYSE: MMM )
for more than eight years, I have to say that I'm perfectly happy with
how the company has developed and how the stock has outperformed
against the S&P 500. 3M often only gets grudging credit from some
analysts as a good stock to own during downturns, but few companies
match, let alone surpass, the company's long-term returns on capital and
net assets.
I am not all that eager to dislodge a cornerstone position (albeit a
small cornerstone...), but I cannot aggressively advocate readers to
join me in owning 3M right now. The company's market exposures (both by
end market and geography) don't look ideal for the coming year and the
valuation seems to already assume that everything will go well. Instead,
I would suggest that investors consider names like Honeywell (NYSE: HON ) , Eaton (NYSE: ETN ) , and Dover (NYSE: DOV ) in what is an admittedly bargain-poor industrial conglomerate sector these days.
Read more here:
3M Co. Has The Quality, But Are Growth And Value Lacking?
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