3M (MMM) Ascends While Market Falls: Some Facts to Note
The most recent trading session ended with 3M (MMM) standing at $92.69, reflecting a +1.37% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily loss of 1.02%. Meanwhile, the Dow experienced a drop of 1.04%, and the technology-dominated Nasdaq saw a decrease of 1.65%.
Shares of the maker of Post-it notes, industrial coatings and ceramics have depreciated by 1.39% over the course of the past month, underperforming the Conglomerates sector's gain of 6.69% and the S&P 500's gain of 3.64%.
Market participants will be closely following the financial results of 3M in its upcoming release. In that report, analysts expect 3M to post earnings of $2.11 per share. This would mark year-over-year growth of 7.11%. At the same time, our most recent consensus estimate is projecting a revenue of $7.77 billion, reflecting a 3.22% fall from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.77 per share and a revenue of $32.52 billion, representing changes of +5.74% and -0.5%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for 3M. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.87% higher. 3M presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, 3M is currently exchanging hands at a Forward P/E ratio of 9.36. This signifies a discount in comparison to the average Forward P/E of 16.9 for its industry.
Meanwhile, MMM's PEG ratio is currently 1.29. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Diversified Operations industry had an average PEG ratio of 2.37.
The Diversified Operations industry is part of the Conglomerates sector. Currently, this industry holds a Zacks Industry Rank of 35, positioning it in the top 14% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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3M Company (MMM) : Free Stock Analysis Report
