3M (MMM) closed the most recent trading day at $124.35, moving -0.41% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.78%. Elsewhere, the Dow lost 0.88%, while the tech-heavy Nasdaq lost 0.26%.
Coming into today, shares of the maker of Post-it notes, industrial coatings and ceramics had lost 11.92% in the past month. In that same time, the Conglomerates sector lost 4.02%, while the S&P 500 lost 3.4%.
3M will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.70, up 10.2% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.77 billion, down 1.95% from the year-ago period.
MMM's full-year Zacks Consensus Estimates are calling for earnings of $10.40 per share and revenue of $35.08 billion. These results would represent year-over-year changes of +2.77% and -0.77%, respectively.
Any recent changes to analyst estimates for 3M should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. 3M is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note 3M's current valuation metrics, including its Forward P/E ratio of 12.01. This valuation marks a discount compared to its industry's average Forward P/E of 16.78.
Also, we should mention that MMM has a PEG ratio of 1.26. 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. MMM's industry had an average PEG ratio of 1.61 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% 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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