3M (MMM), a Dow Jones Industrial Average component and the maker of Post-it Notes, flirted with a breakout on Tuesday morning after reporting better than expected earnings and nudging up its full-year outlook. However, 3M stock then turned sharply lower in volatile trade, before fighting to regain its footing.

With a new CEO, a sharper focus and a potential bottoming of some key market segments, 3M stock has been in rally mode, making it the No. 2-ranked Dow Jones stock this year. Shares climbed 48% year to date through Monday, according to MarketSurge, and trailing only Walmart (WMT) among the 30 Dow industrials stocks.

3M's Transformation: New CEO, Spinoff

The diversified manufacturer, based in St. Paul, Minn., has sharply rebounded since March, when 3M named William Brown as its new CEO. Brown formerly served as CEO of defense and aerospace technology firm L3Harris Technologies (LHX). March also saw 3M spin off its Solventum (SOLV) health care business, which now trades on the NYSE.

Around the same time, 3M finalized a multibillion-dollar settlement for contaminating drinking water with compounds used in firefighting foam and some consumer products.

Q3 Earnings Boost

3M early Tuesday posted Q3 adjusted earnings per share of $1.98, up 18% from a year ago and 8 cents ahead of the FactSet consensus. Revenue grew 0.4% to $6.068 billion, as organic sales dipped 0.1%. Operating profit rose to 23% of sales from 21.6% a year ago, amid productivity gains and restructuring.

Among 3M's three main divisions, the safety and industrial division accounted for 46% of revenue, from products like roofing granules, industrial adhesives and automotive aftermarket products. Transportation and electronics made up 31.5% of sales. Consumer products for home improvement, home and auto care, packaging and safety accounted for 21% of sales.

3M narrowed its full-year outlook for adjusted EPS to a range of $7.20 to $7.30 from $7-$7.30, with analysts currently expecting $7.26.

The company's earnings presentation highlights an acceleration in new product introduction into 2025, as well as a focus on improving operational efficiency.

3M Stock Reverses

MMM gapped up as high as 141.34 early Tuesday, then reversed as low as 130.82, before fighting back to 134.19, off just 0.5%, in midday stock market action. The reversal tested support at 3M's 50-day moving average.

The 3M stock chart shows a 140.72 buy point from a four-weeks-tight pattern, according to a MarketSurge analysis on a weekly stock chart.

Be sure to read IBD's The Big Picture column after each trading day to get the latest on the prevailing stock market trend and what it means for your trading decisions.

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