Why 3M’s pullback is a gift


Times of economic difficulty tend to bring up talk of “safety stocks,” but in times of economic prosperity, CNBC’s Jim Cramer sees that narrative flip.

“What if the definition of safety is changing right before our eyes? What happens when what’s prudent suddenly becomes what’s reckless and what used to be reckless becomes responsible?” the “Mad Money” host asked. “That, gentle viewer, is exactly what we are seeing in this market.”

With strong economic activity around the world, Cramer said investing standards are changing. In this kind of “synchronized economic expansion,” stocks that may be seen as risky in other times could gain serious traction, he said.

One such stock is 3M, which delivered a handy earnings beat on Tuesday rife with orders from around the world.

“You could argue 3M’s having one of its strongest years ever and that’s saying something. This company was founded in 1902,” Cramer said. “I am dazzled by the performance of this company and its stock, which soared from $220 to $237 in two days. This is a big, old-line industrial. You know what? It went down a little today. Pullback: gift.”

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