3M (MMM) closed at $178.47 in the latest trading session, marking a +1.77% move from the prior day. This move outpaced the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.34%, and the Nasdaq, a tech-heavy index, added 0.23%.
Heading into today, shares of the maker of Post-it notes, industrial coatings and ceramics had gained 6.19% over the past month, outpacing the Conglomerates sector's gain of 1.98% and the S&P 500's gain of 3.81% 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 $2.10 per share. This would mark a year-over-year decline of 9.09%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.12 billion, up 2.25% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.05 per share and revenue of $32.12 billion, which would represent changes of -13.48% and -1.96%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for MMM. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.46% lower. MMM is currently a Zacks Rank #3 (Hold).
Digging into valuation, MMM currently has a Forward P/E ratio of 19.38. Its industry sports an average Forward P/E of 17.18, so we one might conclude that MMM is trading at a premium comparatively.
Investors should also note that MMM has a PEG ratio of 2.04 right now. 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 2.21 based on yesterday's closing prices.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 33% 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.
To follow MMM in the coming trading sessions, be sure to utilize Zacks.com.
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