3 Companies to Buy on This Early Cycle Recovery

Economic Cycle Overview - The current economic cycle is influenced by rising bond yields and higher interest rates, leading to a shift in spending and restocking as inflation declines [2][3] - The decline in inflation is expected to facilitate inventory acquisition for businesses when interest rates decrease [2] Company Insights: 3M - 3M stock is forecasted to have a 12-month price target of $153.46, indicating a potential upside of 4.85% from the current price of $146.36 [4] - UBS Asset Management increased its holdings in 3M by 10.9%, valuing their stake at approximately $616.6 million [5] - J.P. Morgan analyst Stephen Tusa has set a new valuation target for 3M at $167 per share, suggesting a 12.7% upside from the current trading price [7] Company Insights: Cleveland-Cliffs - Cleveland-Cliffs has a 12-month stock price forecast of $12.74, representing a significant upside of 76.54% from the current price of $7.22 [9] - The stock trades at 31% of its 52-week high, indicating that most bearish scenarios are already priced in [9][10] - A decline in short interest by 4.9% suggests that bearish sentiment is waning, favoring buyers [11] Company Insights: Dow Inc. - Dow Inc. has a 12-month stock price forecast of $38.86, indicating a potential upside of 42.85% from the current price of $27.20 [13] - The stock trades at 48% of its 52-week high, suggesting limited downside risk [13] - Institutional buying has been strong, with $785 million in purchases in the current quarter, building on $1.3 billion from the previous quarter [14]