JPMorgan raises ratings on 3M and Emerson Electric ahead of quarterly earnings

JPMorgan Chase upgraded shares of 3M and Emerson Electric ahead of their next quarterly earnings reports, moving both stocks to “Overweight” from “Neutral,” according to a market note published by Yahoo Finance on July 17, 2026. The changes announcement a more constructive view of near-term performance as the companies prepare to update investors on revenue, margin dynamics, and demand trends.

In the note, JPMorgan pointed to what it described as improving growth prospects for both firms. The bank’s rationale, as summarized in the article, also referenced supportive end-market trends, suggesting that demand conditions in the industries these companies serve are expected to remain a tailwind into the earnings window.

JPMorgan’s move comes at a time when industrial investors are often focused on whether prior slowdowns are stabilizing and whether operating improvements can offset cost pressures. For both 3M, known for products spanning abrasives, healthcare supplies, and industrial and consumer brands, and Emerson Electric, which supplies industrial automation and measurement technologies, quarterly reports typically serve as a checkpoint for the durability of demand and pricing.

An “Overweight” rating generally indicates the analyst expects a stock to perform better than the broader market or its peer group, relative to a baseline view. A “Neutral” rating implies limited expected outperformance, or uncertainty about the timing and magnitude of improvements. By shifting both companies to Overweight, JPMorgan effectively raised its expectations for relative performance, at least for the period leading up to and including the earnings release.

For 3M, investors will typically be watching for signs that management can translate product momentum and mix into steadier revenue trends, while also addressing costs and restructuring efforts that have been recurring themes for the company. For Emerson, the focus is often on industrial activity and how automation and instrumentation orders track against broader capital spending cycles.

The Yahoo Finance piece did not provide specific target prices, forecast revisions, or granular segment-by-segment drivers in the excerpt described in the market note. It also did not include quantitative details on what JPMorgan expects from each company’s upcoming quarter, other than referencing improving growth prospects and supportive end-market conditions.

Beyond the two upgrades, the market context is that large banks frequently adjust ratings in advance of earnings when they believe the information flow coming from quarterly results is likely to reduce uncertainty. In practice, upgrades can also reflect confidence that demand indicators, order trends, or guidance may come in better than the market currently anticipates.

Still, the article’s characterization leaves several questions unanswered. JPMorgan did not disclose, in the summary provided, the exact end-market categories it is most focused on, the extent of expected changes to earnings or cash flow, or whether the ratings move depends on any specific assumptions about guidance. As a result, investors will likely need to wait for the companies’ earnings releases and any accompanying commentary to see whether the upgraded view is validated. The next key data point will be what each company reports for its quarter and management’s forward outlook, particularly any guidance on demand and profitability trends.

For readers tracking these names, the upgrades underscore that expectations heading into earnings are not static. As results approach, brokerage research can shift quickly based on changes in what analysts believe is happening in the underlying industrial demand backdrop. JPMorgan’s decision, as described in the note, suggests it sees enough momentum to move both stocks to a more constructive stance, but investors will still need the earnings print to confirm how much of that momentum is translating into reported performance and guidance.