We recently compiled a list of the 12 Most Undervalued Dow Stocks to Buy According to Analysts. 3M Company is one of them.
3M Company (NYSE:MMM), a diversified industrial giant known for its innovations in healthcare, safety, and industrial products, is being recognized by analysts as one of the most undervalued Dow stocks heading into 2025. The firm is executing a “back to basics” strategy aimed at restoring growth and operational discipline while navigating macroeconomic challenges and ongoing litigation. MMM stands twelfth on our list among the most undervalued stocks.
At the Morgan Stanley 13th Annual Laguna Conference in September 2025, CEO Bill Brown outlined MMM’s strategic vision, which includes a 25% margin expansion target by 2027 and the launch of 1,000 new products over the next three years. With a focus on research, development, and commercial excellence, the firm expects these initiatives to generate $1 billion in growth above macroeconomic trends. Key industries such as semiconductors, aerospace, data centers, and automotive are at the center of this growth strategy.
To sharpen its portfolio, 3M Company (NYSE:MMM) is reviewing more than 120 profit centers and plans to divest roughly 10% of underperforming businesses. Operational improvements are already visible, with on-time delivery surpassing 90% in Q3 2025, helping the business rebuild distributor and customer confidence.
However, legal challenges remain significant. The corporation is managing PFAS and earplug-related lawsuits, including a $12.5 billion PFAS settlement with public water suppliers. The firm issued its first payment, an $8 million check to New Hampshire, in September 2025. In line with regulatory and environmental goals, MMM will exit PFAS manufacturing by the end of 2025 and is developing alternatives to eliminate PFAS from consumer products.
Financially, 3M Company (NYSE:MMM) reported strong Q2 2025 results with earnings per share beating estimates and organic revenue rising 1.4% year-over-year. With a dividend yield of 1.9% and a payout ratio near 40%, the company continues to appeal to investors seeking both value and dividend growth.
While we acknowledge the potential of MMM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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