3M Co (NYSE:MMM) stock could eke out a fourth-straight daily gain, last seen up 0.1% to trade at $171.74. The blue-chip name bounced off prior resistance at the $160 level, and earlier came within striking distance of its Oct. 24, four-year high of $172.85. Now, a historically bullish signal flashing may help the security conquer those highs and extend its 33% year-to-date lead.
3M stock's recent peak comes amid low implied volatility (IV), per its Schaeffer's Volatility Index (SVI) of 23%, which ranks in the 17th percentile of its annual range. This has occurred five other times over the last five years, after which the security was was higher one month later 70% of the time, averaging a 2.6% pop. From its current perch, a similar move would place MMM above $176 for the first time since 2019.
Analysts are mostly bullish toward the equity, but there is room for additional optimism. Of the 16 brokerage firms covering 3M stock, six still carry a tepid "hold" or worse rating. This means a round of upgrades could be in store.
Meanwhile, options traders have been much more bearish than usual, per the equity's 10-day put/call volume ratio of 1.67 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 98% of annual readings. An unwinding of pessimism could keep tailwinds blowing for MMM.
