Is 3M Co (MMM) a Tight End Player?

3M Co (NYSE:MMM), formerly known as Minnesota Mining and Manufacturing Company, was presented as the money making giant on CNBC. Mad Money host, Jim Cramer, said that it has good opportunities for most of the upcoming future events, even if the company is one of the most exposed players on the global arena, exposing it to the current political instabilities.


Reports for the second quarter announced 4.8% increase in organic local-currency sales growth, 11.7% bump in Earnings per Share, up to $1.91, operating margins of 22.8%, 0.8 percentage points year-on-year growth and a compensation of $2.0 billion to shareholders through gross shares’ repurchase and dividend. 3M Co (NYSE:MMM) shows promising potential, especially when compared to its current competitors.

“In terms of geography, 3M has the most international exposure of any of the peers, which might sound like exactly what you don’t want at a time of global chaos, but I think this company has what it takes to survive and thrive in this environment […],” said Jim Cramer.

3M Co (NYSE:MMM) is already firmly established in the emerging economies, having about 35% of its sales from the developing or partly developed countries. The growth rate in these markets if substantially higher than in developed ones. It’s also good to note the fact that 3M Co (NYSE:MMM) has a culture that strongly promotes innovation.

“The company has 45 innovation centers around the world, which are constantly searching for new opportunities and turning out new products. Last year one third of 3M sales came from products that had been released in the past five years […],” added Mr. Cramer.

To conclude the list of reasons why 3M Co (NYSE:MMM) would be the tight end in ones portfolio: It has defensive traits due to its large market coverage and mediocre (relative to other industries), yet sustainable growth, but it can also play offensively through innovation to stimulate future price growth, and if the global relations do not further erode, but rather ameliorate, the company will catch the the pass and boost its value.

Disclosure: none