3M (MMM) Dips More Than Broader Markets: What You Should Know
3M (MMM) closed the most recent trading day at $174.58, moving -1.42% from the previous trading session. This move lagged the S&P 500's daily loss of 0.91%. At the same time, the Dow lost 0.89%, and the tech-heavy Nasdaq lost 0.12%.
Heading into today, shares of the maker of Post-it notes, industrial coatings and ceramics had lost 3.57% over the past month, lagging the Conglomerates sector's loss of 2.5% and the S&P 500's gain of 1.55% in that time.
Investors will be hoping for strength from 3M as it approaches its next earnings release. On that day, 3M is projected to report earnings of $2.07 per share, which would represent a year-over-year decline of 13.03%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.66 billion, up 0.88% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.87 per share and revenue of $35.35 billion. These totals would mark changes of +12.93% and +9.83%, respectively, from last year.
Any recent changes to analyst estimates for 3M should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 remained stagnant. 3M is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, 3M is holding a Forward P/E ratio of 17.94. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 17.94.
It is also worth noting that MMM currently has a PEG ratio of 1.89. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Diversified Operations industry currently had an average PEG ratio of 1.72 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 34% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
3M Company (MMM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
