2016-08-26 14:46:35

3M Company, #MMM [NYSE]
Industrial goods, Diversified production, USA

Financial performance:

Index –DJIA, S&P 500; Beta – 1.11;
Capitalization - 96.20 В Assets profitability - 15.10%;
Revenue - 4.83 B; Average volume – 2.91 М;
P/E - 20.95; ATR – 2.79.

Analytical review:

  • The Company has the 2nd biggest capitalization in the industrial goods sector among the issuers listed on the US stock market.
  • Last month, 3M Company's stock edged up over 1.3%. The issuer retained a key support level at 178.00 USD last week. The company's quotes are expected to rise further.
  • According to the latest report (on the 2nd quarter of the fiscal year 2016), the company's revenue fell 0.3% to 7.66 billion USD due to the strong dollar's pressure. The EPS factor amounted to 2.08 USD against a year-ago value of 2.02 USD.
  • The Company's Return on equity and investments is the highest in the industry. Return on investments amounts to 18.81% and Return on equity - to over 39%, while the average values for this industry equal 5.75% and 8.44%, respectively.
  • The company's work efficiency is confirmed by high operating and net profit margins (23.37% and 16.32%, respectively) as compared to competitors' respective results (5.30% and 2.72%).

Summary:

  • The latest report has consolidated investors' confidence in the company. Despite the strong dollar's pressure, the company's net profit increased. Multipliers point out that a postive trend for the issuer may continue.
  • Thus, we expect that the company's quotes will be rising in the nearest future.

Trading tips for the 3M Company's CFDs

Key levels:
Support levels: 178.00 USD, 175.95 USD
Resistance levels: 180.15 USD, 182.15 USD

Medium-term trading, H1
The issuer is currently trading near a resistance level of 180.15 USD. Once this level is broken and tested and relevant confirming signals appear (Price Action patterns, for example), we recommend searching for market entry points to open long positions. Risk per trade: no more than 2% of equity. Stop order shall be placed a bit below the signal line. We recommend that prospective profits should be fixed partly at the levels of 1182.00 USD, 183.50 USD and 185.00 USD, with Trailing Stop applied.

Medium-term trading, H1
Medium-term trading, H1


Short-term trading, M15
The issuer is currently trading between the local support and resistance levels of 179.00/179.75 USD. We advise you to search for market entry points once these levels are broken and tested. Positions shall be opened in the direction of the signal line and the nearest support/resistance level. Risk per trade: no more than 3% of equity. Stop order shall be placed a bit above/below the signal line. Prospective profits shall be fixed partly, at 50%, 30%, and 20% of a prospective fluctuation, with Trailing Stop applied.

Short-term trading, M15
Short-term trading, M15