In the latest trading session, 3M (MMM) closed at $136.51, marking a -0.89% move from the previous day. This change was narrower than the S&P 500's 1.6% loss on the day. At the same time, the Dow lost 1.84%, and the tech-heavy Nasdaq lost 0.95%.
Heading into today, shares of the maker of Post-it notes, industrial coatings and ceramics had lost 9.99% over the past month, outpacing the Conglomerates sector's loss of 16.81% and the S&P 500's loss of 10.82% in that time.
Wall Street will be looking for positivity from MMM as it approaches its next earnings report date. In that report, analysts expect MMM to post earnings of $2.08 per share. This would mark a year-over-year decline of 6.73%. Our most recent consensus estimate is calling for quarterly revenue of $8.15 billion, up 3.59% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.82 per share and revenue of $32.46 billion. These totals would mark changes of -3.08% and +1.01%, respectively, from last 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 6.96% lower. MMM is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, MMM is currently trading at a Forward P/E ratio of 15.62. This valuation marks a premium compared to its industry's average Forward P/E of 13.29.
Investors should also note that MMM has a PEG ratio of 1.64 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. The Diversified Operations industry currently had an average PEG ratio of 1.75 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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