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3M Company (MMM) Targets 25% Margin Expansion, Launches 1,000 New Products by 2028

We recently compiled a list of the 12 Most Undervalued Dow Stocks to Buy According to Analysts. 3M Company is one of them.

3M Company (NYSE:MMM), a diversified industrial giant known for its innovations in healthcare, safety, and industrial products, is being recognized by analysts as one of the most undervalued Dow stocks heading into 2025. The firm is executing a “back to basics” strategy aimed at restoring growth and operational discipline while navigating macroeconomic challenges and ongoing litigation. MMM stands twelfth on our list among the most undervalued stocks. 

At the Morgan Stanley 13th Annual Laguna Conference in September 2025, CEO Bill Brown outlined MMM’s strategic vision, which includes a 25% margin expansion target by 2027 and the launch of 1,000 new products over the next three years. With a focus on research, development, and commercial excellence, the firm expects these initiatives to generate $1 billion in growth above macroeconomic trends. Key industries such as semiconductors, aerospace, data centers, and automotive are at the center of this growth strategy.

To sharpen its portfolio, 3M Company (NYSE:MMM) is reviewing more than 120 profit centers and plans to divest roughly 10% of underperforming businesses. Operational improvements are already visible, with on-time delivery surpassing 90% in Q3 2025, helping the business rebuild distributor and customer confidence.

However, legal challenges remain significant. The corporation is managing PFAS and earplug-related lawsuits, including a $12.5 billion PFAS settlement with public water suppliers. The firm issued its first payment, an $8 million check to New Hampshire, in September 2025. In line with regulatory and environmental goals, MMM will exit PFAS manufacturing by the end of 2025 and is developing alternatives to eliminate PFAS from consumer products.

Financially, 3M Company (NYSE:MMM) reported strong Q2 2025 results with earnings per share beating estimates and organic revenue rising 1.4% year-over-year. With a dividend yield of 1.9% and a payout ratio near 40%, the company continues to appeal to investors seeking both value and dividend growth.

While we acknowledge the risk and potential of MMM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MMM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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