3M: Little Near-Term Upside But Decent Income Potential


  • The next year looks very challenging for 3M.
  • Management gets credit for a solid job in navigating the COVID years.
  • The Wall Street consensus outlook is not favorable.
  • The market-implied outlook (calculated from options prices) suggests that current pessimism may be overdone.
  • Selling covered calls can generate substantial income.
Prague, Czech republic - May 22, 2017: 3M company logo on headquarters building


3M (NYSE:MMM) is in the midst of a very challenging period. The shares are down 47.48% over the past 5 years, with annualized total return of -8.36% per year over this period. There are a number of substantial headwinds

Disclosure: I/we have a beneficial long position in the shares of MMM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I have sold covered calls, as explained in the post

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