3M (MMM) closed the most recent trading day at $163.65, moving -0.39% from the previous trading session. This change lagged the S&P 500's daily gain of 0.82%. Meanwhile, the Dow gained 0.82%, and the Nasdaq, a tech-heavy index, added 0.64%.
Coming into today, shares of the maker of Post-it notes, industrial coatings and ceramics had lost 8.28% in the past month. In that same time, the Conglomerates sector lost 5.53%, while the S&P 500 lost 4.58%.
Wall Street will be looking for positivity from MMM as it approaches its next earnings report date. On that day, MMM is projected to report earnings of $2.04 per share, which would represent a year-over-year decline of 21.24%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.04 billion, down 4.18% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.32 per share and revenue of $32.24 billion. These totals would mark changes of -10.9% and -1.6%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for MMM. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 1.35% lower within the past month. MMM is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note MMM's current valuation metrics, including its Forward P/E ratio of 17.62. This represents a premium compared to its industry's average Forward P/E of 16.24.
We can also see that MMM currently has a PEG ratio of 1.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Diversified Operations was holding an average PEG ratio of 1.85 at yesterday's closing price.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 66, which puts it in the top 26% 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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