In the latest trading session, 3M (MMM) closed at $178.62, marking a +0.1% move from the previous day. The stock lagged the S&P 500's daily gain of 0.35%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.56%.
Prior to today's trading, shares of the maker of Post-it notes, industrial coatings and ceramics had gained 8.57% over the past month. This has outpaced the Conglomerates sector's gain of 6.17% and the S&P 500's gain of 4.69% in that time.
MMM will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.10, down 9.09% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.12 billion, up 2.25% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for MMM. These recent revisions tend to reflect the evolving nature of short-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. 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 has moved 0.49% higher. MMM is currently a Zacks Rank #3 (Hold).
In terms of valuation, MMM is currently trading at a Forward P/E ratio of 18.5. This represents a premium compared to its industry's average Forward P/E of 16.99.
Meanwhile, MMM's PEG ratio is currently 1.95. 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. MMM's industry had an average PEG ratio of 2.08 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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