3M (MMM) Flat As Market Sinks: What You Should Know
3M (MMM) closed the most recent trading day at $102.78, making no change from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.7%. Elsewhere, the Dow lost 0.87%, while the tech-heavy Nasdaq added 2.77%.
Prior to today's trading, shares of the maker of Post-it notes, industrial coatings and ceramics had lost 10.01% over the past month. This has lagged the Conglomerates sector's loss of 2.33% and the S&P 500's loss of 5.06% in that time.
Investors will be hoping for strength from 3M as it approaches its next earnings release. The company is expected to report EPS of $1.62, down 38.87% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.46 billion, down 15.55% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.65 per share and revenue of $31.45 billion. These totals would mark changes of -14.36% and -8.12%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for 3M. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 has moved 0.14% higher. 3M currently has a Zacks Rank of #4 (Sell).
Investors should also note 3M's current valuation metrics, including its Forward P/E ratio of 11.88. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 11.88.
We can also see that MMM currently has a PEG ratio of 1.25. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Diversified Operations was holding an average PEG ratio of 1.46 at yesterday's closing price.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 38% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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