The stock market is usually pretty good at discounting the future, but sometimes investors get a little too pessimistic. That appears to be what is going on at global industrial giant 3M (NYSE: MMM) these days.
Here’s a quick look at why long-term investors might want to put this stock on their wish lists anyway.
Shares of 3M are about breakeven for the year, which is actually not so bad given the coronavirus pandemic. That said, the S&P 500 Index, using the SPDR S&P 500 ETF as a proxy, is up around 15%, so 3M is actually lagging well behind the broader market. Push back a little bit further and 3M’s stock performance is actually pretty grim, with shares down roughly 25% over the last three years, compared to a 37% gain for the S&P 500.