Should I buy 3M stock in 2025?

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At HelloSafe, our expert has been monitoring 3M’s performance for over three years. Every month, hundreds of thousands of users across Canada rely on us to analyze market trends and pinpoint the best investment opportunities. Our analyses are provided for informational purposes only and do not represent investment advice. In accordance with our ethical guidelines, we have never been, and never will be, compensated by 3M.

What is 3M?

How much is 3M stock?

The price of 3M stock is declining this week. As of now, MMM shares trade at $137.36 USD, showing a 0.74% drop over the last 24 hours and a decrease of 0.96% over the past week. 3M’s market capitalization stands at $74.47 billion, with an average three-month daily volume of 4.23 million shares.

Recent leadership changes and ongoing transformation signal that 3M’s performance could present both risks and opportunities for Canadian investors seeking stability and long-term growth potential.

Our full analysis on 3M stock

After a close review of 3M's latest quarterly results and the stock’s trajectory over the past three years, our advanced analysis—leveraging proprietary financial models and integrating competitive benchmarking, technical metrics, and cross-sector market data—has uncovered notable momentum building in 3M Company. These findings reveal critical signals that may point to an inflection point for the stock, particularly as the company navigates operational transformation and continues to outperform expectations. So, why might 3M stock once again become a strategic entry point into the global industrial and technology sector in 2025?

Recent Performance and Market Context

3M (NYSE: MMM) has reclaimed investor attention with its robust rebound over the past year, rising more than 42% to $137.36 as of April 30, 2025. After a multi-year period of underperformance related to macroeconomic headwinds and legacy legal challenges, the stock has outpaced both the S&P 500 Industrials Index and direct peers, posting an impressive +8.1% gain in the last six months alone. This acceleration reflects growing investor confidence in 3M’s turnaround story and the company’s demonstrated resilience.

Among the most notable recent events is the transition in leadership, with William “Bill” Brown assuming the CEO role effective May 2025. This is widely seen by analysts as a positive catalyst, signaling renewed strategic focus. 3M has also completed its long-anticipated spin-off of its healthcare division—now operating as Solventum—allowing the company to sharpen its industrial and consumer technology orientation. Despite moderate global trade turbulence and moderate short-term tariff concerns, the macro backdrop for diversified industrial technology companies remains constructive in 2025: global demand for advanced materials, safety solutions, and electronics is durable, and 3M's multi-market exposure positions it well for ongoing sector rotation toward cyclical growth names.

Technical Analysis

From a technical perspective, 3M stock displays constructive price behavior and consolidating momentum, primed for a potential bullish phase. The current price of $137.36 is notably above its 20- and 200-day moving averages ($134.87), a sign that the stock is establishing a new base following its recent rally. While the price is modestly below its 50- and 100-day moving averages ($143.50 and $141.26, respectively), this relationship signals a consolidation phase—a healthy pause following strong gains, often a precursor to renewed upside.

• RSI (14 days) sits at 48.13, close to a “neutral” posture, presenting room for upward movement should positive news flow or earnings momentum resume.
• MACD, while slightly negative at -5.71, appears to be stabilizing, typically signaling an end to short-term corrective action.
• Well-defined support at $134.85 (recent daily low) and initial resistance at $138.00 (recent daily high) suggest a tight trading range—a technical setup where a break above resistance could quickly draw in new buyers.

Looking to historical volatility and sector cyclicality, 3M’s presence above the critical 200-day MA tends to correlate with multi-month bullish cycles, as seen in prior industrial recoveries. The technical structure, supported by recent volume patterns, indicates that further bullish confirmation is in sight.

Fundamental Analysis

3M’s Q1 2025 results reinforce its strong fundamental backbone. Despite a modest 1% year-over-year dip in GAAP revenue (to $6.0 billion), adjusted sales grew 0.8% year-over-year—driven primarily by organic growth of 1.5%. More impressively, earnings per share (EPS) leaped 61% year-over-year on a GAAP basis ($2.04), while adjusted EPS climbed 10% ($1.88). This margin expansion, with operating margin up 180 basis points (GAAP) and adjusted margin up 220 basis points, highlights the effectiveness of cost initiatives, operational discipline, and portfolio optimization.

The company’s forward valuation at a P/E ratio of 17.4 remains highly reasonable compared to industrial peers and below the broader technology sector’s multiple. This level, combined with the analyst consensus target price of $148.57 (+8% upside), positions 3M attractively from a risk-reward perspective for both value and growth-oriented investors.

Beyond metrics, 3M's enduring strengths rest on several pillars:

• World-class innovation: Over $1.5 billion invested in R&D annually, supporting advances across safety, electronics, automotive, healthcare, and consumer solutions.
• Diversification: Balanced revenue mix (45% Safety/Industrial, 34% Transportation/Electronics, 20% Consumer) cushions business cycles and underpins resiliency.
• Brand power and market leadership: Decades-long reputation for quality, with flagship brands found in virtually every industrial and consumer market segment.
• Expansion in high-growth global end markets: Focused capital deployment in sectors benefiting from secular growth, including electronics, environmental solutions, and smart manufacturing.

Volume and Liquidity

Sustained trading activity underscores institutional and retail confidence in the stock’s prospects. The average daily volume stands robust at 4.23 million shares over three months, ensuring high liquidity and tight bid-ask spreads for investors of all profiles. The free float (537.65 million shares of 538.18 million outstanding) is remarkably broad, reducing susceptibility to volatility spikes and favoring stable, dynamic valuation recalibration as new information reaches the market.

This active trading ecosystem increases the likelihood of swift reaction to positive catalysts, providing investors with both entry and exit flexibility—an essential feature for optimizing returns in a shifting macro environment.

Catalysts and Positive Outlook

A convergence of powerful catalysts points toward sustained upside in 2025 and beyond:

• Strategic refocusing after the healthcare spin-off grants management sharper operational discipline and capital allocation efficiency—historically a major driver of shareholder value in diversified corporations.
• New CEO Bill Brown brings a proven track record of driving transformation and shareholder returns in industrial conglomerates, with early indications that management will target further efficiency gains.
• Digital transformation commitment: Acceleration of data analytics and automation is expected to elevate productivity and support gross margin expansion.
• Active portfolio management: Targeted investments in high-return verticals and ongoing divestment of lower-growth assets should incrementally improve the earnings profile.
• Environmental, Social, and Governance (ESG): 3M is driving ESG initiatives, including PFAS remediation and sustainability-linked innovations—endeavors that resonate with institutional capital and regulatory bodies globally.
• Sector tailwinds: As global industrial spending recovers and supply chains stabilize, end markets like automotive, electronics, and construction are set to benefit—sectors in which 3M enjoys significant market share.

Additionally, successful litigation resolutions have substantially reduced headline risk, while management estimates that potential 2025 tariff impacts are manageable and already factored into guidance. The company expects adjusted EPS of $7.60–$7.90 for 2025 (excluding tariff effects), reflecting confidence in the underlying business momentum.

Investment Strategies

3M’s current setup lends itself to multiple investment timeframes and approaches:

• Short-term opportunities: For tactical investors, a breakout above $138.00 could trigger renewed upside momentum, targeting the $148–$150 range (analyst consensus target) given supportive volume and technical structure.
• Medium-term positioning: As the company tracks toward further margin improvement and executes transformation initiatives under new leadership, accumulations on dips toward $135 (well-supported by moving averages) might yield attractive risk-adjusted returns.
• Long-term conviction: The shift toward high-growth verticals, sustained innovation drive, and global industrial exposure make 3M well-suited for portfolios seeking a blend of value, yield, and cyclically leveraged growth. Importantly, its 2.12% dividend yield adds a layer of income stability uncommon among large-cap industrial tech names.

For Canadian and international investors, 3M’s USD listing on the NYSE offers both geographical and sectoral diversification within a globally recognized blue-chip framework.

Is It the Right Time to Buy 3M?

Current evidence strongly supports refreshed consideration of 3M as a core holding for investors seeking broad exposure to the industrial-technology crossover space. The key strengths—resilient fundamentals, a disciplined operational reset, above-market margin expansion, active portfolio and ESG management, and newfound leadership—appear to be converging at an opportune moment. Liquidity remains ample, technical signals are aligning for renewed strength, and the company’s diversified exposure to fast-growing global sectors positions it uniquely to benefit from an eventual cyclical upswing.

With a justified valuation, attractive yield, and a strategic inflection point underway, 3M shares may be entering a new bullish phase for 2025—one in which both capital appreciation and income growth can play a complementary role. For investors attuned to the global industrial and technology sector evolution, 3M represents a timely opportunity worthy of serious, portfolio-level consideration.

In today’s shifting market landscape, 3M stands as a compelling case for those seeking long-term growth, defensive qualities, and proximity to key industrial trends—all backed by a legacy of innovation and a resolute commitment to shareholder value.

How to buy 3M stock in Canada?

Buying shares in 3M (MMM) online is both straightforward and secure when using a regulated Canadian broker. Investors can choose between two main approaches: purchasing 3M shares outright (“spot buying”), making you a direct owner, or trading 3M through Contracts for Difference (CFDs), which track the share price without actual ownership. Each method has its own advantages and risk profile, catering to different investment goals. For those considering their options, a detailed broker comparison is available further down this page to help find the approach best suited to your needs.

Spot Buying

When you buy 3M stock via the "cash purchase" method, you acquire real shares registered in your name, benefiting from any dividends and voting rights. Typically, Canadian brokers charge a fixed commission per order—often between $5 and $10 per trade.

Example

If the 3M share price is $137.36 USD and you want to invest approximately $1,000 CAD (about $730 USD at current rates), you could buy around 5 shares of 3M, factoring in a $5 brokerage fee.

✔️ Gain scenario: If the share price increases by 10%, your investment would now be worth about $1,100 CAD.

Result: That’s a gross gain of +$100, or +10% on your initial stake (before taxes and fees), clearly illustrating the benefit of direct share ownership if the market moves favourably.

Trading via CFD

Trading 3M via a CFD lets you speculate on its share price without owning the shares themselves. With CFDs, you can use leverage—meaning you control a larger position with a smaller upfront amount. Brokers usually charge a spread (difference between buy/sell price) and overnight financing fees if positions are held longer than a day.

Example

With a $1,000 CAD deposit and 5x leverage, you’d have exposure to $5,000 CAD worth of 3M shares.

✔️ Gain scenario: If 3M’s share price rises by 8%, your position increases by 8% × 5 = 40%.

Result: This equates to a $400 gain on your $1,000 initial margin (excluding fees and currency fluctuations). Remember that leverage increases both potential profits and risks, so positions can lose value just as quickly.

Final Advice

Before investing, it’s essential to carefully compare broker fees, trading platforms, and account conditions, as costs and features can vary widely in Canada. Ultimately, your choice between spot buying and CFD trading should reflect your investment objectives, risk tolerance, and whether you prefer full share ownership or speculative, leveraged exposure. For more details and broker comparisons, consult the selection tool available further down this page.

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Our 7 tips for buying 3M stock

The latest news about 3M

3M surpasses Q1 expectations with robust results and margin expansion, reflecting operational strength in North America and Canada. The company reported Q1 2025 adjusted EPS of $1.88, an increase of 10% year-over-year, and a GAAP EPS up 61%, outperforming analyst projections. Notably, organic sales grew by 1.5%, while adjusted operating margins expanded by 220 basis points to 23.5%. These improvements are partly attributed to ongoing efficiency measures and cost controls within its North American operations, which directly benefit Canadian businesses relying on 3M’s composites, abrasives, and safety solutions—key market segments across Canadian industries such as automotive, construction, and healthcare.

3M completes healthcare business spin-off, sharpening its strategic focus on industrial and consumer markets vital to Canadian sectors. The successful spin-off of its healthcare division, Solventum, allows 3M to dedicate more resources toward core industrial, transportation, electronics, and consumer operations, areas that are strongly represented across Canada. The refocusing enhances its ability to innovate and invest in product lines critical to Canadian market needs, such as workplace safety, energy-efficient materials, and advanced adhesives. This move is expected to benefit Canadian distributors and manufacturers who rely heavily on 3M’s diversified portfolio for operational resilience and product quality.

Leadership transition brings renewed strategic vision, with Bill Brown taking the helm as CEO as of May 1, 2025. With the appointment of William M. Brown as CEO, 3M is anticipated to accelerate its digital transformation and portfolio optimization initiatives, both of which are closely watched by Canadian institutional investors given the company’s substantial presence and direct employment in Canada. This leadership change signals a constructive shift toward leveraging digital analytics and operational agility, aligning with broader trends in Canadian industry toward automation and digital supply chains, ultimately positioning 3M as a stronger partner for domestic businesses.

Despite tariff headwinds, 3M maintains robust guidance and strong Canadian market positioning, underpinned by efficient cost management. 3M has assessed a potential earnings impact of $0.20-$0.40 per share from new tariffs in 2025 but is maintaining its overall earnings guidance. This resilience is particularly relevant for Canadian operations, where cross-border trade is critical and exposure to U.S.–Canada tariffs can be material. The company’s ongoing commitment to cost control and margin expansion has helped shield Canadian subsidiaries and end-customers from substantial price volatility, enhancing business confidence and reinforcing 3M’s role as a stable supplier.

Analysts maintain a bullish outlook, citing the stock’s attractive upside, healthy dividend yield, and strong Canadian relevance. Professional consensus sets a 12-month target price of $148.57, implying a nearly 30% upside from current levels, while the dividend yield remains attractive at 2.12%. The stock’s positive bias is supported by its outperforming one-year return (+42.86%) and stable base above the 200-day moving average. Canadian investors are particularly drawn by 3M’s diversified industrial exposure, broad product adoption across the region, and commitment to innovation, all of which underpin steady demand in several vital Canadian industries.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.