Analysis of 3M share price

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The share of the American company 3M attracts many investors around the world and presents a high liquidity as well as a sometimes significant volatility. But before you start speculating on this equity, we suggest that you get acquainted with the various information about the company such as details of its activities, its main competitors or its recent partnerships, as well as other stock market data and historical technical analysis that will help you understand how the equity is performing in the market.  

Elements that can influence the price of this asset:

Analysis N°1

First, we'll monitor 3M's buyout announcements of other companies allowing it to diversify its activities.

Analysis N°2

We'll also keep an eye on the group's expansion strategy in certain segments such as the renewable energy segment which will undoubtedly bring important new sources of income in the future. This also concerns investments made by 3M in the cathode material sector in order to develop new innovative products thereby gaining even more profitability.

Analysis N°3

The group's financial recovery, which suffered greatly from the 2008 economic crisis, should also be followed with the greatest attention.

Analysis N°4

We'll also be following the evolution of increasingly strict laws and regulations regarding the environment and which may thereby influence the group's strategy, the main activity of which involves the chemical sector.

Analysis N°5

Finally, we'll also be watching the competition from this increasingly strong sector of activity.

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General presentation of the 3M Company:

The American group 3M is one of the big names in the global industrial sector which designs, manufactures and markets various types of products. We can divide its production into several major product groups according to the element of turnover they generate and this is how:

Of course it's in the United States that the 3M Company achieves the largest share of its turnover with 40.5% of total turnover. Next comes Asia-Pacific with 29.4% in turnover, Europe, the Middle East and Africa which cumulate 20.50% in turnover and finally Latin America and Canada which generate 9.6%.


Knowing 3M shares competition:

Due to its much diversified activities and the different business sectors affected by the products it develops, 3M faces competitors from various areas of specialization so it's important to know the most dangerous. During your studies of the 3M stock, we advise that you take into account these different competing companies whose different data will need to be integrated into your fundamental analyses. Carefully monitor the results of products of these groups that compete directly with those of 3M.


The strategic alliances set up by the 3M group:

The 3M Company owes its notoriety in the industrial sector to its capacity for innovation, but also its development strategy which is based, at least in part on the signing of some strategic alliances with companies from similar or complementary activity sectors. Here's a summary of the latest alliances set up by the group.


3M share price analysis

During this whole period, above all you'll notice that the 3M share price gained many points and evolved in a resolutely upward fundamental trend, passing from $ 79 in 2008 to over $ 250 in 2018. This impressive progression didn't happen all at once however.

The period began, as was the case with many stocks, with a slight downward trend which lead the stock to $ 41.83 in March 2009 against the background of the global economic crisis. But the psychological level of $ 50 although dropped, retained investors who then started buying the equity en masse. This is how, until July 2011, you notice a distinct and constant bullish line allowing the 3M stock to reach a first high at $ 97.62. But the stock then came up against the strong psychological barrier of $ 100. Investors preferred to be cautious and decided to take their profits, which had the effect of a corrective downward trend towards the $ 71.79 threshold that was reached in September 2011.

However, in reality, this one-off decline was only the starting point for a new bullish trend even longer than the previous one and ultimately allowed the stock to breach the resistance level of $ 100 in January 2013 and reach a new high at $ 164.36 in March 2015. Again, we are witnessing a bearish retracement no doubt motivated by significant gains. The stock then went back down to the $ 139 threshold in September 2015.

After some hesitation during the end of 2015, the 3M stock started 2016 in a positive way with the start of a new straight upward trend. The stock then managed to break a new record by reaching the highest of $ 213.24 in June 2017 before retracing slightly towards $ 202 in August of the same year. But quickly, the underlying bullish trend took over and a further rise in the stock this time towards the $ 258.57 reached in January 2018 and which is, to date, the highest registered in the last ten years.

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76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.