Investors who are frustrated with expensive mega-capitalization firms may consider the discarded, ignored stocks that are on a fire sale. The market used to look at these companies as favorite, widely-held investments. It may earn that back again after they posted quarterly results that suggest a potential upside from here.
3M (MMM) fell from $110 to around $96 last week after posting Q4/2023 results. Revenue of $7.69 billion is -0.3% Y/Y. For 2024, 3M expects sales growth of 0.25% to 2.25%. Its inventory channel is stabilizing after reducing levels. Still, consumers in China are cautious. Once inventory falls, the company may focus its efforts on Europe, the Middle East, and Africa.
Beaten up Nokia (NOK) gained over 10% after posting Q4 results. It earned EUR 0.10 a share as revenue fell by 23.4% Y/Y to EUR 5.71 billion. In 2024, Nokia expects to post an operating profit of up to EUR 2.9 billion. Most importantly, it is buying back EUR 600 million of its shares. This shareholder-friendly move should help stop the decline in its share price.
In the defense industry, Lockheed Martin (LMT) stock fell from $460 to $430 last week. The firm posted $18.87 billion in revenue and $7.90 a share in non-GAAP EPS. Markets are disappointed in the small revenue drop. Still, the world has been building its arsenal for several years. As governments announce higher military spending, Lockheed will win big contracts.
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