What’s Happening With 3M Stock?

3M stock (NYSE: MMM) has seen a 7% fall in a month, compared to a 3% fall for the broader S&P500 index. However, 3M stock rose 5% on August 28 after the media reports about the company nearing the settlement of its earplugs lawsuits emerged. In the longer term, 3M stock is down 41% from levels seen in late 2019, far worse than the S&P 500 index, up around 35%.

Interestingly, MMM stock had a Sharpe Ratio of -0.3 since early 2017, which is lower than 0.6 for the S&P 500 Index over the same period. This compares with the Sharpe of 1.3 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.