At SIA Charts, we compare head-to-head battles of thousands of stocks, commodities, mutual funds and exchange traded funds daily and rank them by who is winning the most in their respective universes. The top 25% are considered the Green Favored Zone, 26-50% make up the Yellow Neutral Zone and the bottom half of each league table is considered the Red Unfavored Zone. SIA Charts relative strength reports also provides investors with an indication of changing and ongoing trends in a stock’s performance relative to its peers. This year, 3M Company (MMM) had declined -5.35% YTD, -9.98% for the trailing 1-year time frame and an annualized return of negative 10.98% for the trailing 3-year time frame and -7.76% over the past 5 years. The corresponding index has increased 22.92% YTD, 18.13% over the past 1 year and 8.97% over the past 3 years and 12.66% over the past 5 years. 3M Company, an Industrial conglomerate stock, has been residing in the Red Unfavored Zone for at least the last 5 years and currently sits in the 98th out of 103 spots in the SIA S&P 100 Index report, dropping 4 spots in the last quarter.
In looking at the 3 Year Candlestick Chart of 3M Co (MMM) we see a steady downtrend of consistently lower lows and lower highs which is still intact up until today indicating an extended period of a long-term distribution phase. Which makes matters worse, in long term downtrends, stocks tend to first form some sort of a basing pattern for a period of time before an uptrend can materialize which we don’t see occurring yet on 3M. SIACharts also helps you identify other names for better opportunities in the Peer group. General Electric, another Industrial Conglomerate stock, resides in the Green Favored Zone and is up 86.01% YTD, 91.31% in the past 1 year, an annualized return of 21.96% in the past 3 years and 22.81% in the past 5-year time frame.
In looking at the Point and Figure Chart at a 2% Scale, we see that the stock peaked back in February of 2018 at a price of approximately $209.54 and since then, a steady decline of lower highs and lower lows formed. A brief recovery ensued in 2020 up until June 2021 but failed to break above its long-term downtrend line and a new downtrend materialized once again with new lows being established along the way.
Currently we see the shares in a rising column of X’s this month but a change in trend has not been confirmed as of yet. Near-term resistance is fast approaching at the $109.00 to $111.00 area and, above that, the $125.00 level. Support can be found at its 3-box reversal of $98.73 and, below that, $89.42. With a bearish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 5 out of 10, MMM is exhibiting short-term weakness against the asset classes.
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