3M (MMM) closed the most recent trading day at $166.76, making no change from the previous trading session. This change was narrower than the S&P 500's 0.01% loss on the day. Elsewhere, the Dow gained 0.06%, while the tech-heavy Nasdaq lost 0.06%.
Prior to today's trading, shares of the maker of Post-it notes, industrial coatings and ceramics had gained 3.65% over the past month. This has lagged the Conglomerates sector's gain of 5.43% and outpaced the S&P 500's gain of 3.23% in that time.
Investors will be hoping for strength from MMM as it approaches its next earnings release. The company is expected to report EPS of $2.56, down 0.78% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.19 billion, up 0.5% from the prior-year quarter.
MMM's full-year Zacks Consensus Estimates are calling for earnings of $9.34 per share and revenue of $32.23 billion. These results would represent year-over-year changes of -10.71% and -1.64%, respectively.
Any recent changes to analyst estimates for MMM should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MMM is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, MMM is currently trading at a Forward P/E ratio of 17.86. This valuation marks a premium compared to its industry's average Forward P/E of 16.73.
Also, we should mention that MMM has a PEG ratio of 1.88. 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. Diversified Operations stocks are, on average, holding a PEG ratio of 1.88 based on yesterday's closing prices.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 28, putting it in the top 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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