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3M (MMM) Falls More Steeply Than Broader Market: What Investors Need to Know

In the latest trading session, 3M (MMM) closed at $101.69, marking a -1.69% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.06% for the day. Elsewhere, the Dow saw a downswing of 0.22%, while the tech-heavy Nasdaq appreciated by 0.31%.

The maker of Post-it notes, industrial coatings and ceramics's stock has climbed by 10.61% in the past month, exceeding the Conglomerates sector's gain of 9.47% and the S&P 500's gain of 5.1%.

Investors will be eagerly watching for the performance of 3M in its upcoming earnings disclosure. In that report, analysts expect 3M to post earnings of $2.32 per share. This would mark year-over-year growth of 1.75%. Our most recent consensus estimate is calling for quarterly revenue of $7.68 billion, down 4.99% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $9.12 per share and a revenue of $31.76 billion, demonstrating changes of -9.7% and -7.23%, respectively, from the preceding year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for 3M. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, 3M boasts a Zacks Rank of #2 (Buy).

Digging into valuation, 3M currently has a Forward P/E ratio of 11.34. This indicates a discount in contrast to its industry's Forward P/E of 16.9.

It is also worth noting that MMM currently has a PEG ratio of 1.54. 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. MMM's industry had an average PEG ratio of 2.26 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This industry, currently bearing a Zacks Industry Rank of 89, finds itself in the top 36% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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