3M Rolls Out Surgical Skin Prep Solution for Clinicians

3M Company MMM recently rolled its surgical skin prep solution — 3M SoluPrep Film-Forming Sterile Surgical Solution. The solution will help clinicians fight surgical site infection (SSI) diseases. The latest product leverages the company’s expertise in adhesive and polymer technology.

Inside the Headlines

Per the Centers for Disease Control and Prevention, 1 in 25 patients in a hospital suffers due to healthcare-related infections like SSIs. These diseases are caused due to presence of infectious bacteria in the surgical incision area. In order to reduce the incidence of such diseases, clinicians use anti-microbial agents to reduce the bacteria on a patient’s skin.

3M tries to invent effective solutions for enhancing patient’s surgical outcomes. The company’s new surgical skin prep solution will significantly help remove bacteria from a patient’s skin before any surgical treatment. The solution is composed of 70% isopropyl alcohol and 2% chlorhexidine gluconate (CHG). The copolymer of the solution forms a water-insoluble film and improves the stay of bacteria-killing chemical — CHG. A patient’s skin is able to withstand harshness of simulated surgical conditions on account of this.

Relative to the present widely-used CHG prep, 3M’s latest skin prep solution ensures more CHG remaining on a patient’s skin after simulated surgical conditions such as repetitive wiping. In addition, the solution is more viscous and permits greater visibility than the traditional skin prep solutions available in the market. 

What’s Pulling Down 3M Stock?

Over the past three months, 3M’s shares have rallied 6.4%, underperforming 7.1% growth recorded by the industry.

Also, on a P/E(TTM) basis, this Zacks Rank #4 (Sell) stock looks overvalued compared to its industry, with respective tallies of 22.1x and 19.5x for the last three-month period. Notably, the company is currently trading higher than the median P/E(TTM) multiple for the same time frame.

 

In the last 60 days, the Zacks Consensus Estimate for 3M’s earnings moved south for 2018 and 2019, reflecting negative market sentiments. We notice that rising cost of sales has become a major cause of worry for the company. The metric has surged 3.5% in first-half 2018, primarily due tomaterial cost inflation. 

Stocks to Consider

Some better-ranked stocks in the same space are:

Macquarie Infrastructure Company MIC sports a Zacks Rank of 1 (Strong Buy). The company pulled off an average positive earnings surprise of 8.05% in the last four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

Altra Industrial Motion Corp. AIMC flaunts a Zacks Rank of 1. The company generated an average positive earnings surprise of 4.01% in the trailing four quarters.

Danaher Corporation DHR carries a Zacks Rank #2 (Buy). The stock came up with an average positive earnings surprise of 4.95% during the same time frame.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
3M Company (MMM) : Free Stock Analysis Report
 
Macquarie Infrastructure Company (MIC) : Free Stock Analysis Report
 
Danaher Corporation (DHR) : Free Stock Analysis Report
 
Altra Industrial Motion Corp. (AIMC) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research