MMM - Forget 3M Buy This Hot Growth Stock Instead
2023-11-23 09:03:00 ET
On a risk/reward basis, I think machine vision company Cognex (NASDAQ: CGNX) is a better buy than industrial conglomerate 3M (NYSE: MMM) right now. They are very different companies with heavy exposure to end markets like consumer electronics and automotive. However, Cognex has significantly more upside potential than 3M, while the downside potential is similar. For that reason alone, I think Cognex is the better buy. Here's why.
There's no getting away from the elephant in the room. Both companies have had a tough year. 3M is set to deliver an organic sales growth decline of 3% for the full year (a figure at the low end of its initial guidance range of flat sales on 2022 to a 3% decline), and Wall Street analysts believe Cognex's full-year sales will decline by 17.5% compared to 2022.
Seeing both stocks down significantly this year is not surprising.
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Forget 3M, Buy This Hot Growth Stock Instead