Should I buy 3M stock in 2025? Complete ZA Guide

What is 3M?

How much is the 3M stock?

The price of 3M stock is rising this week. As of now, MMM trades at $149.63, marking a daily gain of $0.97 (0.65%), though showing a slight 0.10% dip over the past week. The company's market capitalisation stands at $80.53 billion, with an average three-month trading volume of 4.14 million shares. 3M stock offers a P/E ratio of 18.61, a dividend yield of 1.95%, and a beta of 1.08, reflecting moderate volatility. For investors in South Africa, 3M’s global diversification and consistent dividends present balanced opportunities amid changing market dynamics.

Our full analysis of the 3M stock

After a thorough review of 3M Company’s latest financial results and a rigorous evaluation of its stock performance over the past three years, our proprietary analysis—integrating leading financial indicators, technical signals, market data, and an up-to-date peer comparison—offers a multidimensional perspective on this iconic industrial conglomerate. Recent data reveal both resilience and strategic adaptation, painting a dynamic backdrop for investors. 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 delivered an impressive comeback, highlighted by a substantial +53.37% gain over the past twelve months, decisively outperforming key industrial peers and broad indices. The current share price of $149.63 (as of May 29, 2025) is near the upper end of its 52-week range ($96.89–$156.35), reflecting both the momentum from a series of positive quarterly results and improving sentiment in the industrials segment.

Notably, the company has resolved long-running PFAS-related litigation with the state of New Jersey, reducing a significant legal overhang that had weighed on the stock for several years. This legal clarity, alongside robust earnings surprises—3M beat consensus EPS estimates for the fifth consecutive quarter—has catalysed renewed investor confidence.

The global industrial landscape further bolsters the case for 3M. Stabilising international supply chains, a resurgence in infrastructure investment, and a heightened focus on strategic diversification are all tailwinds supporting multinational names with diversified portfolios and scalable innovation pipelines. For South African investors seeking exposure to resilient, global industrial growth with meaningful technology overlap, 3M stands out as particularly well positioned as conditions shift in 2025.

Technical Analysis

• Moving Averages: All major moving averages (20-, 50-, 100-, and 200-day) are currently below the share price, producing active buy signals and pointing to a strong underlying trend.
• RSI (14-day): At 56.34, the RSI reflects neutral-to-positive momentum, suggesting that the stock is neither overbought nor oversold and has capacity for further upward moves without significant short-term risk of reversal.
• MACD: While the MACD shows a mild sell signal (+2.83), this is counterbalanced by the moving averages. It can reflect short-term digestion after a strong run, rather than an outright negative trend.
• Support and Resistance: Key support is established in the $147–$148 band—a zone that has repeatedly attracted buyers—while immediate resistance is not far away at $150.99. The upper boundary at $156.35 represents the next significant test.

Furthermore, the consolidation above all key averages signals sustained market interest and provides a technically attractive entry zone near current levels, especially if the share price successfully retests support areas.

Fundamental Analysis

• Earnings Power: Q1 2025 saw adjusted EPS surge 10% year-on-year to $1.88, exceeding expectations. Operating margins remain robust at 20.9%—a remarkable feat given challenging industrial headwinds.
• Revenue: Adjusted revenue increased 0.8% YoY in Q1 2025, signalling stabilisation and growth in key business segments despite a modest top-line contraction.
• Profitability: The firm’s return on equity soared to 93.82% and profit margins remain elevated at 17.79%, demonstrative of capital efficiency and pricing power.
• Valuation: At a trailing P/E of 18.61, MMM appears attractively valued relative to both historical averages and the broader industrial technology cohort, especially given its reliable dividend (1.95% yield and consistent payments).
• Cash Management: $7.02 billion in total cash reflects balance sheet strength and provides optionality for investments, dividends, or opportunistic strategic actions.

Crucially, 3M maintains a diversified business model spanning three stable, innovation-driven segments—safety/industrial, transportation/electronics, and consumer—which reduces cyclical risk exposure and enables ongoing margin improvement.

Volume and Liquidity

Liquidity in MMM remains substantial, with an average daily volume of 4.14 million shares over the previous three months, indicating ongoing institutional and retail investor interest. The stock’s float supports dynamic valuation and ensures that large trades can be executed efficiently without distorting prices, an important point for South African investors seeking offshore exposure.

Consistent trading activity at current levels, especially as shares approach technically significant thresholds, is typically interpreted as a reliable indicator of market confidence and sustained investor engagement.

Catalysts and Positive Outlook

• Legal Resolution: The settlement of legacy PFAS litigation effectively removes a structural impediment to sentiment, freeing management to focus fully on operational execution and portfolio optimisation.
• Innovation Pipeline: Continued launches—like the recent ScotchBlue PROSharp Painter's Tape—demonstrate ongoing product innovation and deep R&D capabilities across business lines.
• Strategic Refocus: 3M’s continued rationalisation of its portfolio—emphasising higher-margin businesses—hints at further operational upside.
• Macro Environment: With tariff preparedness already built into guidance, 3M appears well positioned to weather potential trade disruptions, while global sectoral tailwinds (infrastructure, technical standards, environmental/ESG) remain robust.
• Sustainability: Strengthening ESG initiatives and sustainable product developments further reinforce its long-term relevance, resonating with institutional mandates globally.

Importantly, analyst consensus remains constructive: Out of 14–20 analysts, the stock carries a moderate buy rating with recent upgrades and price target hikes (e.g., Mizuho’s move to $155 and Wolfe Research’s continued Outperform), adding to the stock’s credibility as a core industrial holding.

Investment Strategies

• Short-term: Active traders may identify a constructive entry point near current support ($147–$148), potentially capitalising on momentum as the stock works toward the $151–$156 resistance band. Recent volume metrics suggest heightened interest around these inflection zones.
• Medium-term: Investors focused on the second half of 2025 may view the legal settlements and robust Q1 results as a springboard for renewed multiple expansion and upside toward consensus price targets ($152–$155)—with optionality to the high scenario at $184.
• Long-term: 3M’s combination of innovation, balance sheet health, and attractive valuation underpins a durable thesis for compounding total shareholder return through dividends, growth, and further operational discipline. For South African buyers seeking geographic and sectoral diversification, 3M offers an efficient vehicle for global industrial and technological participation.

Positioning at current levels appears attractive, either for dollar-cost averaging or for more opportunistic allocation ahead of subsequent earnings or product launch catalysts in the second half of the year.

Is it the Right Time to Buy 3M?

In summary, 3M’s compelling blend of strong profitability, solid dividend yield, robust technical support, and the removal of major legal uncertainties signals a new phase of credibility and upside. The stock’s 53% rally over the past year demonstrates renewed institutional confidence, while ongoing innovations and portfolio optimisation support a fundamentally bullish case. With valuations still reasonable, strong analyst endorsement, and multiple catalysts on the horizon, 3M seems to represent an excellent opportunity for investors seeking quality, global industrial exposure within their portfolios.

For South African investors in particular, 3M offers not just diversification into the world’s premier industrial economy, but also access to sustainable, technology-driven growth underpinned by consistently superior execution. If the current trends and structural strengths persist, 2025 could mark the beginning of a renewed chapter of outperformance for this storied name—an opportunity that deserves serious consideration for any forward-looking portfolio.

How to buy 3M stock in South Africa?

Buying 3M (MMM) shares online in South Africa is a straightforward and secure process when using a reputable, FSCA-regulated broker. Today, international brokers offer two main ways to invest: purchasing shares outright (“spot” buying), or trading via Contracts for Difference (CFDs), each with distinct advantages and risks. Spot buying gives you direct ownership, while CFDs offer leverage and the ability to trade on price movement. The next section will guide you through both approaches, and you’ll find a dedicated broker comparison further down this page to help you decide which best suits your needs.

Spot Buying

A cash or spot purchase means directly buying 3M shares—you become a shareholder and own the stock itself. Most brokers charge a fixed commission per transaction; for South Africans, this is often around R100–R200 per order. Prices are denominated in US dollars, as 3M trades on the NYSE.

Example

Current 3M price: $149.63
You invest: $1,000 (~R18,500*)
Broker fee: ~$5 (~R95)
Shares bought: $1,000 / $149.63 ≈ 6.68 shares (rounded down to 6 shares after fees)

✔️ Gain scenario:
If 3M’s price rises by 10%, your holding is now worth $1,100.
Result: A $100 gross gain or +10% return on your initial investment (excluding currency variation).

Trading via CFD

CFDs (Contracts for Difference) allow you to speculate on 3M’s price movements without owning the shares. CFDs suit active traders because you can use leverage and go long or short. Typical costs include the spread (the broker’s markup on price) and overnight financing if your position remains open beyond a day.

Example

You stake: $1,000 (R18,500*) on 3M CFDs
Leverage used: 5x (market exposure $5,000)
If 3M rises by 8%: Your exposure gains $400 (8% of $5,000)
Return: $400 profit on a $1,000 deposit (excluding spreads and overnight fees)
CFDs magnify both potential profits and losses, so risk control is essential.

Final Advice

Before investing in 3M stock, take time to compare brokers’ fee structures, trading platforms, and support for South African clients—costs and features can vary widely. Your decision between spot buying and CFD trading should align with your financial goals, risk tolerance, and investment timeframe. To help you choose, a comprehensive brokerage comparison is available further down this page, supporting you in taking the first confident step as a 3M investor.

*USD/ZAR conversion rates fluctuate; estimate based on R18.50 = $1 at time of writing.

Our 7 tips for buying 3M stock

The latest news about 3M

3M's fifth consecutive quarterly earnings beat demonstrates sustained profitability and strong operational discipline. In Q1 2025, 3M delivered an adjusted EPS of $1.88—up 10% year-over-year and surpassing the consensus estimate—as well as a GAAP EPS of $2.04, both evidencing robust bottom-line performance. This consistent record of earnings beats underpins investor confidence globally, including among South African portfolio managers seeking stable blue-chip exposures with reliable dividend histories. The company's adjusted revenue marginally increased and operating margin remains above 20%, affirming its high-quality execution during an uncertain global macroeconomic environment.

Resolution of major PFAS litigation with New Jersey relieves significant legal risk and removes a market overhang. 3M recently finalized settlement terms concerning PFAS-related claims with the state of New Jersey, a positive legal development closely watched by international investors. This resolution substantially lowers the risk of material financial surprises related to environmental litigation, which had previously been a source of volatility for the company's share price. The removal of this legal uncertainty is constructive for capital inflows from risk-conscious investors and global funds with mandates in African markets.

3M’s forward-looking tariff mitigation strategy reassures stakeholders about resilience against geopolitical disruptions and supply chain risks. The company has outlined clear plans to address potential tariff impacts, including flexible logistics, diversified sourcing, and pricing strategies to absorb or pass on higher costs. This proactive approach shields its international footprint—South Africa included—against volatility from global trade tensions, enhancing the robustness of its supply chain which is essential for maintaining product availability to regional distributors and local industry customers.

Technical signals remain supportive, with the stock trading above all short- and long-term moving averages and analysts maintaining a moderate buy recommendation. Recent trading activity places the share price above its 20-, 50-, 100- and 200-day simple moving averages, collectively generating buy signals amid a broadly neutral RSI and a cautionary MACD. Notably, analyst consensus hovers at "moderate buy," while high-profile houses have recently reaffirmed "overweight" positions and even raised price targets, reflecting institutional confidence in 3M’s growth trajectory—an important consideration for South African institutional investors benchmarking offshore allocations.

The upcoming June 12 dividend payment underscores 3M's ongoing commitment to shareholder returns and income stability. With a forward yield of 1.95% and a well-supported quarterly dividend of $0.73, the company sustains its “Dividend Aristocrat” status. This reliability is highly relevant to South Africa–based investors and funds seeking US-listed, hard currency dividend streams, particularly amidst fluctuating local and emerging market yields. The recent ex-dividend date (May 23) and confirmed payment sustain confidence in the stock’s ability to generate regular cash flows for international portfolios.

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.