The most heavily weighted stock among the 30 equities that comprise the Dow Jones Industrial Average is 3M Co. (NYSE: MMM). As of Monday’s close, 3M accounts for nearly 6.5% of the Dow, nearly double the expected 3.33% for each stock included in the average.
At an investors and analyst meeting Tuesday morning in St. Paul, Minn., 3M’s CEO Inge G. Thulin will outline the company’s plan through 2020. These include:
- 8% to 11% earnings per share (EPS) growth
- 2% to 5% organic growth measured in local currency
- 20% return on invested capital
- 100% free cash flow conversion
What 3M is saying is that investors can expect 2016 to be a lot like last year. In the 2015 fiscal year, EPS came in at $7.58 (or $7.72 excluding a restructuring charge) and organic growth in local currency totaled 1.3%. Free cash flow conversion totaled 103%, and the company’s return on invested capital totaled 22.5%. If anything, 3M is being careful to underpromise with the hope of overdelivering.
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