Emerson Electric (NYSE:EMR). Here s why they believe these three stocks are poised to run higher.
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3M looks undervalued
Lee Samaha (3M): The multi-industry industrial has fallen out of favor with the market in recent years, largely due to a history of missing guidance, PFAS liability risk, and poor execution. However, there is a strong case for arguing that the de-rating has gone too far. Whether it s an earnings-based valuation, or one based on free cash flow, 3M now looks like a good value compared to its peers.
Throw in a well-covered dividend (currently yielding 3.6%) and a management team committed to cutting the cost base, making administrative changes, and restructuring the portfolio through corporate activity, and you have a recipe for the stock to have a good 2021.