3M Co. shares have declined -25.5% year to date versus the Zacks Diversified Operations industry’s decline of -22.1%. The Zacks analyst believes that headwinds related to raw material and logistics cost inflation are hurting 3M’s bottom line.
Supply chain woes are affecting production volumes in the electronics and automotive OEM markets. Due to these headwinds, shares of the company have declined 26.8% in the past six months. 3M’s high debt levels are also a concern.
However, 3M seems well-positioned to benefit from its portfolio reshaping actions. The company’s acquisition of the technology assets of LeanTec strengthen its ability to deliver a more connected, digital bodyshop solution via its RepairStack Performance Solutions. Strength across its several end-markets, such as, manufacturing, electronic materials, healthcare IT, home improvement, wound care and automotive/mobility are expected to support the top line. 3M’s efforts to reward its shareholders is encouraging.