3M (MMM) closed the most recent trading day at $169.19, moving -1.63% from the previous trading session. This move lagged the S&P 500's daily loss of 0.48%. At the same time, the Dow lost 0.43%, and the tech-heavy Nasdaq lost 0.78%.
Heading into today, shares of the maker of Post-it notes, industrial coatings and ceramics had gained 4.42% over the past month, lagging the Conglomerates sector's gain of 4.65% and the S&P 500's gain of 5.97% in that time.
Wall Street will be looking for positivity from MMM as it approaches its next earnings report date. This is expected to be July 25, 2019. In that report, analysts expect MMM to post earnings of $2.04 per share. This would mark a year-over-year decline of 21.24%. Meanwhile, our latest consensus estimate is calling for revenue of $8.04 billion, down 4.18% from the prior-year quarter.
MMM's full-year Zacks Consensus Estimates are calling for earnings of $9.31 per share and revenue of $32.24 billion. These results would represent year-over-year changes of -10.99% and -1.6%, respectively.
Any recent changes to analyst estimates for MMM should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.11% lower. MMM is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, MMM currently has a Forward P/E ratio of 18.47. This represents a premium compared to its industry's average Forward P/E of 16.98.
It is also worth noting that MMM currently has a PEG ratio of 1.82. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MMM's industry had an average PEG ratio of 1.89 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 84, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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