Three Industrials Stocks to Avoid: Matson, 3M, and Taylor Morrison Home

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Summary · why it matters

StockStory identifies Matson, 3M, and Taylor Morrison Home as three industrials stocks to steer clear of due to weakening fundamentals. Matson saw annual revenue growth of just 3.3% over the last two years, a 13.2 percentage point drop in free cash flow margin over five years, and shrinking returns on capital. 3M faces sluggish organic sales, projected sales growth of only 3.2% next year, and a 2.3% annual decline in earnings per share over the past five years. Taylor Morrison Home has experienced a 33.2% average backlog decline over two years, a forecasted revenue drop of 12.9% for the upcoming 12 months, and falling earnings per share.

Impact on assets 3

Industrials▼ · 1 stocks
Matson Inc
MATX
▼ NegativeCapitalrelevance

Weak fundamentals: low revenue growth, declining free cash flow margin, and shrinking returns on capital.

Artificial Intelligence▼ · 1 stocks
3M Company
MMM
▼ NegativeCapitalrelevance

Sluggish organic sales, low projected sales growth, and declining earnings per share.

Consumer Discretionary▼ · 1 stocks
Taylor Morn Home
TMHC
▼ NegativeDemandrelevance

Large backlog decline and forecasted revenue drop indicate weakening demand for homes.