U.S. Markets closed

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

Zacks Equity Research

3M (MMM) closed the most recent trading day at $176.42, moving +0.34% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 0.3%.

Prior to today's trading, shares of the maker of Post-it notes, industrial coatings and ceramics had gained 4.49% over the past month. This has outpaced the Conglomerates sector's gain of 1.24% and the S&P 500's gain of 2.69% 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 $2.47, up 6.93% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.12 billion, up 2.25% from the year-ago period.

Investors should also note any recent changes to analyst estimates for MMM. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. MMM is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note MMM's current valuation metrics, including its Forward P/E ratio of 19.43. This valuation marks a premium compared to its industry's average Forward P/E of 17.35.

Investors should also note that MMM has a PEG ratio of 2.05 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 2.23 based on yesterday's closing prices.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 99, putting it in the top 39% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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.