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

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3M (MMM) closed the most recent trading day at $201.36, moving -0.71% from the previous trading session. This move lagged the S&P 500's daily gain of 0.18%.

Coming into today, shares of the maker of Post-it notes, industrial coatings and ceramics had lost 0.77% in the past month. In that same time, the Conglomerates sector lost 0.75%, while the S&P 500 gained 2.43%.

Wall Street will be looking for positivity from MMM as it approaches its next earnings report date. This is expected to be July 27, 2021. The company is expected to report EPS of $2.20, up 23.6% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.41 billion, up 17.26% from the year-ago period.

MMM's full-year Zacks Consensus Estimates are calling for earnings of $9.78 per share and revenue of $34.99 billion. These results would represent year-over-year changes of +11.9% and +8.71%, respectively.

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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.51% higher. MMM is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, MMM currently has a Forward P/E ratio of 20.73. For comparison, its industry has an average Forward P/E of 20.76, which means MMM is trading at a discount to the group.

We can also see that MMM currently has a PEG ratio of 2.18. 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. The Diversified Operations industry currently 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 44, which puts it in the top 18% 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.

To follow MMM in the coming trading sessions, be sure to utilize Zacks.com.


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