3M (MMM) Offering Possible 59.24% Return Over the Next 21 Calendar Days

3M's most recent trend suggests a bearish bias. One trading opportunity on 3M is a Bear Call Spread using a strike $197.50 short call and a strike $202.50 long call offers a potential 59.24% return on risk over the next 21 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $197.50 by expiration. The full premium credit of $1.86 would be kept by the premium seller. The risk of $3.14 would be incurred if the stock rose above the $202.50 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for 3M is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for 3M is bearish.

The RSI indicator is at 23.88 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for 3M

Should You Bite on Eaton Corporation PLC’s Yield?
Thu, 28 Jun 2018 03:41:41 +0000
Some of the reasons it lists include a portfolio of market-leading businesses, organic growth, margin improvements, significant scale and disciplined capital allocation. As most seasoned investors are aware, efficient capital allocation is the hallmark of great companies. Let’s consider Eaton’s capital allocation for a moment.

3M’s Short Interest Continues to Be Stable: What Does That Mean?
Wed, 27 Jun 2018 14:30:58 +0000
The latest data as of May 31 show that 3M’s (MMM) short interest is range-bound in 2018. Its short interest has fallen to 1.3% as of May 31. Although 3M stock has fallen more than 20% from its all-time high of $258, positive sentiment remains.

A Look at 3M’s Valuation Compared to Its Peers
Wed, 27 Jun 2018 13:01:16 +0000
As of June 26, 3M’s (MMM) one-year forward PE multiple is 18.05x. That compares to Honeywell International’s (HON) PE multiple of 17.2x and Stanley Black & Decker’s (SWK) of 15.0x. A forward PE multiple takes future earnings into consideration.

Analysts Continue to Cut 3M’s Target Price
Wed, 27 Jun 2018 11:32:03 +0000
Currently, 14 analysts are actively tracking 3M (MMM) stock. Analysts’ consensus target price for 3M is $213, which implies a return potential of 8.8% over the closing price on June 25. In the past three months, analysts have cut their consensus target price for 3M from $244.50 to $213, indicating their hawkish view on the stock.

3M’s Interest Coverage Is Down Substantially: Should We Worry?
Tue, 26 Jun 2018 17:30:02 +0000
It’s natural that when debt increases, so do interest expenses. 3M’s interest expenses have gone up significantly, from $171 million in 2012 to $322 million in 2017. In the first quarter of 2018, 3M’s interest expense was $82 million.

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