U.S. markets close in 5 hours 36 minutes
  • S&P 500

    3,371.79
    +36.32 (+1.09%)
     
  • Dow 30

    27,828.48
    +375.82 (+1.37%)
     
  • Nasdaq

    11,216.27
    +131.03 (+1.18%)
     
  • Russell 2000

    1,521.51
    +16.78 (+1.12%)
     
  • Crude Oil

    39.46
    +0.17 (+0.43%)
     
  • Gold

    1,892.50
    -10.70 (-0.56%)
     
  • Silver

    24.01
    -0.43 (-1.76%)
     
  • EUR/USD

    1.1730
    -0.0015 (-0.13%)
     
  • 10-Yr Bond

    0.6770
    +0.0320 (+4.96%)
     
  • GBP/USD

    1.2909
    +0.0049 (+0.38%)
     
  • USD/JPY

    105.6580
    +0.0030 (+0.00%)
     
  • BTC-USD

    10,765.88
    -78.33 (-0.72%)
     
  • CMC Crypto 200

    230.91
    +9.52 (+4.30%)
     
  • FTSE 100

    5,907.95
    +10.45 (+0.18%)
     
  • Nikkei 225

    23,185.12
    -353.98 (-1.50%)
     

3M (MMM) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, 3M (MMM) closed at $165.66, marking a +0.96% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.67%. At the same time, the Dow added 0.57%, and the tech-heavy Nasdaq gained 0.61%.

Prior to today's trading, shares of the maker of Post-it notes, industrial coatings and ceramics had gained 7.86% over the past month. This has outpaced the Conglomerates sector's gain of 3.66% and the S&P 500's gain of 7.78% in that time.

MMM will be looking to display strength as it nears its next earnings release. In that report, analysts expect MMM to post earnings of $2.15 per share. This would mark a year-over-year decline of 16.67%. Our most recent consensus estimate is calling for quarterly revenue of $7.99 billion, down 0.02% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.23 per share and revenue of $31.68 billion. These totals would mark changes of -9.56% and -1.43%, respectively, from last year.

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 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. The Zacks Consensus EPS estimate has moved 2% higher within the past month. MMM is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that MMM has a Forward P/E ratio of 19.94 right now. Its industry sports an average Forward P/E of 19.47, so we one might conclude that MMM is trading at a premium comparatively.

Investors should also note that MMM has a PEG ratio of 2.1 right now. 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. Diversified Operations stocks are, on average, holding a PEG ratio of 2.61 based on yesterday's closing prices.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 116, putting it in the top 46% 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.
 
Zacks Investment Research