3M Stock Has Chart Support in Place as Earnings Loom

What investors can expect from 3M stock in 2021

Jan 22, 2021 at 10:04 AM
facebook twitter linkedin


3M Company (NYSE:MMM) will report  fourth-quarter earnings next week on Jan. 26 before the bell. The company is currently valued at $98.4 billion and has over $44 billion in total assets.

On the charts, MMM has carved out a channel of higher highs since its March 23 seven-year lows near $114. And while the shares have broken from this trendline to start 2021, their 160-day moving average has stepped up to support the pullback. 

MMM Stock Chart

3M has a history of muted post-earnings reactions. In the last eight reports, MMM has averaged a post-earnings move of 4.5%, regardless of direction. This time around, the options market is pricing in a similar 4.8% move for the stock.

Even with a volatile event such as earnings on the horizon, MMM sports attractively priced premium. The security's Schaeffer's Volatility Index (SVI) of 30% sits in the extremely low 13th percentile of its annual range. In simpler terms, options players are pricing in low volatility expectations at the moment.

Looking at the company's financials, MMM has maintained consistent annual revenue and net profit in recent years. 3M stock currently trades at a price-earnings ratio of 20.02 and has a forward price-earnings ratio of 17.54.

Overall, 3M is an ideal stock for dividend investors looking for minimal risk. Investors likely will not see much stock appreciation, but can look forward to one of the most secure dividend payouts in the U.S. stock market. 3M has paid dividends to its shareholders without interruption for more than 100 years, and has increased its annual dividend for 62 consecutive years. MMM has a forward dividend of $5.88 and dividend yield of 3.45%.

 

 

 

These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!

 

Common mistakes options traders make
 


 


 
Special Offers from Schaeffer's Trading Partners