LiteForex - Analytics

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    Analytical review of the stocks of 3M Company as of 17.06.2016.

    3M Company, #MMM [NYSE]
    Industrial goods, Diversified production, USA

    Company’s financial performance:
    Index – DJIA, S&P 500;
    Beta – 1.11;
    Capitalization – 96.20 В;
    Return on asset – 15.10%;
    Income - 4.83 B;
    Average volume – 2.91 М;
    P/E - 20.95;
    ATR – 2.79.

    Analytical review:

    • The company ranks the second on capitalization in the sector of “industrial goods” among the issuers traded in the American stock market;
    • Last month, company’s stocks have grown by 3%. It is expected that the rise will continue;
    • According to the company’s report for Q1 of the fiscal year 2016, company’s revenue amounted to 7.41 billion USD, against the forecast of 7.32 billion USD; net profit of the company rose to $2.05 per share against $1.85 for the same period a year ago;
    • 3M Company is incorporated into the indices DJIA and S&P 500. The rise in the American stock market has a positive impact on the price of the company’s stocks. Last month ETF of the index S&P 500 (#SPY) has grown by over 1.5%;
    • Company efficiency is confirmed by the high operating margin (23.27%) and net profit (16.34%) against the results of the similar companies in the industry;
    • Large investment companies and banks (UBS, RBC Capital, Jefferies) believe that company’s quotes will go up to 187-190 USD per share.

    Summary:

    • Company’s last report has increased investors’ confidence to the company’s management. Despite pressure from strong USD, company’s performance has exceeded market expectations. The company has strong growth potential. Large investment funds predict positive dynamics in the company.
    • It is likely that in the near future company’s quotes will go up.

    Trading tips for CFD of 3M Company.

    Key levels:
    Support level: 169.55 USD and 167.75 USD.
    Resistance levels: 170.60 USD and 171.50 USD.

    Medium-term trading, Н1
    At the moment the Issuer has broken out and consolidated above the local resistance level of 169.55 USD. If the price maintains the mirrored support level of 169.55 USD and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 171.40 USD, 173.50 USD and 176.00 USD with the use of trailing stop.

    Medium-term trading, Н1
    Medium-term trading, Н1

    Short-term trading, М15
    The issuer is traded between the local support and resistance levels of 168.90/170.30USD. It is advisable to enter the market after breaking out and testing of these levels. Positions shall be opened near the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.

    Short-term trading, М15
    Short-term trading, М15


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