3M Company (MMM) to Provide Safety Solutions to U.S. Army

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Diversified industrial goods manufacturer 3M CompanyMMM recently partnered with the U.S. Army to equip soldiers with hearing protection and auditory situational awareness.

Per the deal, 3M's Personal Safety Division received task order for more than 6,500 devices. These devices include the company's PELTOR TEP-100 Tactical Earplug Kits and PELTOR COMTAC III ACH Communications headsets, in addition to spare parts and accessories worth over $1.6 million.

Introduced in 2014, the PELTOR TEP-100 earplugs were designed and developed to provide a low-cost, easy-to-use system that could be used across a wide range of applications in remote locations. The PELTOR COMTAC III ACH introduced in the early 2000s, was originally made for the U.S. military forces and law enforcement tactical teams. The headset uses a proprietary digital audio circuit to compress noises above the desired threshold to a safe decibel level. Additionally, weak sounds can be increased to an audible level for team members with hearing loss. Over 600,000 systems, now in its fourth generation, have been delivered to the military worldwide.

The company supports the objective to maintain hearing protection and prevent hearing loss of the PEO soldiers. These highly advanced products will enable soldiers be more effective in combat and protect their hearing.

3M has outperformed the Zacks categorized Diversified Operations industry in the last three months with an average gain of 6.7% as against 1.6% decline for the latter. Such projects will help the company to enhance its performance further.

On Mar 16, 2017, the company expanded its Safety portfolio with the acquisition of Johnson Controls International plc's JCI operating unit, Scott Safety. Scott Safety is a premier manufacturer of innovative products, which include self-contained breathing apparatus systems, gas and flame detection instruments, and other safety devices which will boost 3M's personal safety portfolio. Such acquisitions enabled 3M to enhance its services leading to such prestigious contracts. This latest contract will enable 3M boost revenues as well as augment its goodwill in the market.

3M currently carries a Zacks Rank #2 (Buy).

A couple other stocks worth considering in the industry include Hitachi, Ltd. HTHIY and Bunzl plc BZLFY . Bunzl carries the same Zacks Rank as 3M, whereas Hitachi sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Bunzl has a long-term earnings growth expectation of 7.50% and is currently trading at a forward P/E of 21.8x.

Hitachi has a long-term earnings growth expectation of 13% and is currently trading at a forward P/E of 10.9x.

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Johnson Controls International PLC (JCI): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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