3M (MMM) struggled for years with lawsuits and managerial missteps.

In May 2024, their board brought in William Brown as the new CEO to lead a turnaround. Last quarter, new management delivered faster-than-expected progress, triggering a significant gap higher.

I entered the position a few weeks later (~$130), once it was clear the gap wasn’t getting filled. Going into that quarter, MMM was a “prove-it” story. In my opinion, the unfilled gap is a strong indication that MMM is “proving it”. My exit price is between $175-$180, based solely on technicals.

Although there is a clear uptrend, the stock has been relatively flat since. MMM reports tomorrow before the open. If management provides more details and continued progress on their well-received plan, I expect the stock to start moving again.

Of course, earnings can disrupt any technical setup, but so far, the market has been forgiving of misses and generous toward meets and beats. I like the macro and micro setup going into the print.