Sunday, November 9, 2014

Why 3M Company Has Underperformed

It's been a frustrating year for shareholders in 3M Company (NYSE: MMM  ) . The company hasn't really done anything wrong, yet the stock has underperformed the S&P 500 by more than 7% this year, as of this writing. The relative weakness is somewhat surprising for such a highly regarded company. Why has the company underperformed, and what can it do about it from here on?




Source: 3M Company.


Global growth weakening; North America fine
As always in investing, there's no clear picture; however, there are three related reasons that 3M is underperforming. First, the diversified industrial sector has been weak in the market this year. A quick look at 3M's share price performance alongside peers Dover Corp. (NYSE: DOV  ) , Illinois Tool Works (NYSE: ITW  ) , and Danaher (NYSE: DHR  )  shows that the whole sector has found it tough going this year.


READ THE FULL EQUITY RESEARCH ARTICLE LINKED HERE