3M Share Price Surges 6% on Strong Earnings

3M (MMM) has posted strong quarterly revenue of $6.5 billion, up 5.6% year on year, beating analyst estimates and full-year EPS guidance expectations.

The company's share price has increased by 6% to $168.69 since the release, with a 10.6% total shareholder return over the past year.

3M's valuation gap remains, with its share price sitting at $168.49 against a widely followed fair value estimate of $185.75, suggesting it may be undervalued by around 9%.

The company's management has successfully navigated legal liabilities, such as PFAS settlements, and maintained robust free cash flow and opportunistic share buybacks.