Why 3M (MMM) Stands Out as One of the 12 Most Profitable S&P 500 Stocks to Buy Now
3M (NYSE:MMM) has cemented its place among the 12 most profitable S&P 500 stocks by consistently delivering strong margins and cash flows, even as it navigates legal and operational headwinds. The conglomerate’s latest move — a long-term supply agreement with Airbus for the A220 program — underscores its ability to secure high-value aerospace contracts and support recurring revenue.
On June 23, 2026, 3M and Airbus formalized a multi-year pact under which 3M will supply thermal and acoustic insulation solutions for the aircraft cabin. The thermal materials aim to improve operational efficiency, while the acoustic insulation is designed to absorb engine and airframe noise, enhancing passenger comfort. This agreement expands 3M’s footprint in the single-aisle jet market, a segment with robust demand amid global airline fleet modernization.
The aerospace win comes on the heels of renewed Wall Street confidence. On June 15, Goldman Sachs reinstated coverage of 3M with a Buy rating and a $190 price target, implying roughly 20% upside from current levels. Analyst Joe Ritchie called 3M an “intriguing self-help story,” citing improving organic growth trends and potential upside from resolution of legacy liabilities. He also noted that shares trade at an inexpensive valuation relative to peers, making the company one of the more visible self-help opportunities in the multi-industry space.
CEO Bill Brown reinforced the upbeat narrative at the Wells Fargo Industrials and Materials Conference on June 10. Brown said orders and backlog were converting to revenue, and that 3M would be “solidly above 3%” in organic growth for the second quarter. He pointed to “good progress in Q1” across about 60% of the portfolio, with general industrial and safety segments growing mid-single digits. Brown added that orders remained solid, backlog had increased further, and momentum was building into the second half of the year.
Beyond aerospace, 3M’s diversified technology portfolio spans industrial, safety, healthcare, and consumer markets in the Americas, Asia Pacific, Europe, the Middle East, and Africa. The combination of cost restructuring, product innovation, and resolution of legal overhangs has drawn attention from value-oriented investors. However, while 3M offers a compelling risk/reward, some analysts argue that other stocks — particularly those tied to artificial intelligence — may offer higher growth potential. For those seeking an under-the-radar AI play that benefits from Trump-era tariffs and the onshoring trend, our free report highlights the best short-term AI stock to watch now.
For further reading: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.
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