Saint Paul, Minnesota-based 3M Company (MMM) provides diversified technology services, conducting operations in electronics, telecommunications, industrial, consumer and office, health care, safety, and other markets. Valued at $78.8 billion by market cap, the company businesses share technologies, manufacturing operations, marketing channels, and other resources. 

Shares of this conglomerate giant have underperformed the broader market over the past year. MMM has gained 20.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 21.5%. However, in 2025, MMM stock is up 16.3%, surpassing the SPX’s 7.1% gains on a YTD basis. 

Narrowing the focus, MMM’s underperformance is also apparent compared to the Industrial Select Sector SPDR Fund (XLI). The exchange-traded fund has gained about 25.1% over the past year. However, MMM’s returns on a YTD basis outshine the ETF’s 14.5% gains over the same time frame.

3M's underperformance stems from weakness in the automotive aftermarket and soft demand in specific industrial markets, compounded by macroeconomic uncertainties such as inflation and unfavorable trade policies, which may impact near-term performance.

On Jul. 18, MMM shares closed down more than 3% after reporting its Q2 results. Its adjusted EPS came in at $2.16, up 11.9% year over year. The company’s adjusted sales increased 2.3% from the year-ago quarter to $6.2 billion. 

For the current fiscal year, ending in December, analysts expect MMM’s EPS to grow 8.5% to $7.92 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.

Among the 16 analysts covering MMM stock, the consensus is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, three “Holds,” one “Moderate Sell,” and two “Strong Sells.”

The configuration has been consistent over the past three months.

On Aug. 1, Wells Fargo & Company (WFC) analyst Joe O’Dea maintained a “Buy” rating on MMM and set a price target of $170, implying a potential upside of 13.3% from current levels.

The mean price target of $162.47 represents an 8.2% premium to MMM’s current price levels. The Street-high price target of $187 suggests an upside potential of 24.6%.