3 Laggards Ready to Explode Higher as Rally Broadens Beyond the AI Space
Key central bank meetings, including the Fed, and important macro data are on the agenda amid a busy week for the financial markets.
While indexes may consolidate sideways, certain stocks have recently experienced significant gains and demonstrate strong bullish momentum.
This analysis aims to assess whether these stocks are priced fairly and if they are likely to keep going up.
To access these stocks, we will use insights from InvestingPro. The three stocks we'll look at are:
3M Company (NYSE:MMM) has updated its earnings projections for the first quarter, raising its estimate per share to a high of $2.20 from the previously stated range of $2.00 to $2.15.
The increase in earnings estimates is due to the effects of the separation of 3M's healthcare business as of April 1 and the announced quarterly dividend of $1.51 per share, or $6.04 if annualized.
Source: InvestingPro
For 3M, the Fair Value from InvestingPro, which summarizes 15 investment models, stands at $127.02, or +20.9% above the current price.
Again InvestingPro subscribers were able to follow the development of the forecasts of the analysts interviewed, as for the target price they are bullish on the stock, at $108.17.
While analysts and Fair Value agree on the possibility of a rise, the risk profile is less reassuring; it has a fair level of financial health, with a score of 2 out of 5.
Comparing the stock with competitors, we have the confirmation we expected, the stock currently has a potentially undervalued valuation.
Source: InvestingPro
3M is now worth 1.8x times its revenue compared to 1.1x in the industry, and the Price/Earnings ratio at which the stock is trading is -8.3X against an industry average of 12x, again pointing to a slight
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