The technical rebound should come to an end when reaching the current resistance zone while the bearish movement should once again gain in force.
Strengths
● The group's high margin levels account for strong profits.
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● Historically, the company has been releasing figures that are above expectations.
Weaknesses
● The stock is close to a major daily resistance at USD 171.44, which should be gotten rid of so as to gain new appreciation potential.
● As estimated by analysts, this group is among those businesses with the lowest growth prospects.
● With an enterprise value anticipated at 3.4 times the sales for the current fiscal year, the company turns out to be overvalued.
● For the past year, analysts have significantly revised downwards their profit estimates.
● Below the resistance at 183.75 USD, the stock shows a negative configuration when looking looking at the weekly chart.
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3M Company is an industrial group organized around four product families:
- industrial products, safety and graphics materials (33.5% of net sales including intra-group): abrasive products, adhesives, cleaners, air and liquid filtration systems, anti-slip coating products, fire protection systems, road signage products, etc. The group also provides display equipment and graphics systems;
- electronics and energy products (26%): interconnection products, connectors, optical components, etc.;
- healthcare products (25.1%): orthopedic, chirurgical and respiratory materials, feminine hygiene products, dental products, etc.;
- consumer goods (15.4%): adhesive tape, self-adhesive papers, filters, projectors, screen supports, etc.
Net sales are distributed geographically as follows: Americas (56.2%), Asia/Pacific (25.9%), and Europe/Middle East/Africa (17.9%).