3M (MMM) closed the most recent trading day at $172.84, moving -0.29% from the previous trading session. This change lagged the S&P 500's 0.02% gain on the day. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq gained 0.17%.
Prior to today's trading, shares of the maker of Post-it notes, industrial coatings and ceramics had gained 2.66% over the past month. This has lagged the Conglomerates sector's gain of 2.84% and the S&P 500's gain of 4.82% in that time.
MMM will be looking to display strength as it nears its next earnings release, which is expected to be July 25, 2019. In that report, analysts expect MMM to post earnings of $2.04 per share. This would mark a year-over-year decline of 21.24%. Meanwhile, our latest consensus estimate is calling for revenue of $8 billion, down 4.64% from the prior-year quarter.
MMM's full-year Zacks Consensus Estimates are calling for earnings of $9.29 per share and revenue of $32.21 billion. These results would represent year-over-year changes of -11.19% and -1.69%, respectively.
It is also important to note the recent changes to analyst estimates for MMM. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.29% lower within the past month. MMM is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, MMM currently has a Forward P/E ratio of 18.67. Its industry sports an average Forward P/E of 17.01, so we one might conclude that MMM is trading at a premium comparatively.
Investors should also note that MMM has a PEG ratio of 1.84 right now. 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. Diversified Operations stocks are, on average, holding a PEG ratio of 1.91 based on yesterday's closing prices.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 35, putting it in the top 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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