Industrial Giant Reports Good Sales

This morning, 3M (MMM) said that sales for July were up 6%, or 3% on an organic basis.

When the company reported its second-quarter earnings, it stated that sales had started July on a positive basis in the low single digits. The organic gains were led by a 11% increase in health care, while consumer sales were up 9% and safety and industrial sales were up 8%. Weakness did continue in the transportation and electronic business sectors, where sales declined 6%.

While I would not read too much into the results from one month, this is an encouraging report. It suggests that 3M will earn at least $8.20 a share this year. Next year, the company may get close to the $9.08 per share that it earned in 2019. Given the positive news, I am raising my price target to $175. My buy under is now $160.