We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3M (MMM) Gains As Market Dips: What You Should Know
Read MoreHide Full Article
In the latest trading session, 3M (MMM - Free Report) closed at $108.46, marking a +0.87% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.75%. Elsewhere, the Dow lost 0.32%, while the tech-heavy Nasdaq lost 0.1%.
Coming into today, shares of the maker of Post-it notes, industrial coatings and ceramics had lost 12.66% in the past month. In that same time, the Conglomerates sector lost 7.5%, while the S&P 500 lost 8.4%.
3M will be looking to display strength as it nears its next earnings release. In that report, analysts expect 3M to post earnings of $2.66 per share. This would mark year-over-year growth of 8.57%. Meanwhile, our latest consensus estimate is calling for revenue of $8.76 billion, down 2.06% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.40 per share and revenue of $35 billion, which would represent changes of +2.77% and -1.02%, respectively, from the prior year.
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. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. 3M is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, 3M is holding a Forward P/E ratio of 10.34. For comparison, its industry has an average Forward P/E of 14.53, which means 3M is trading at a discount to the group.
Investors should also note that MMM has a PEG ratio of 1.09 right now. 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 1.57 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
3M (MMM) Gains As Market Dips: What You Should Know
In the latest trading session, 3M (MMM - Free Report) closed at $108.46, marking a +0.87% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.75%. Elsewhere, the Dow lost 0.32%, while the tech-heavy Nasdaq lost 0.1%.
Coming into today, shares of the maker of Post-it notes, industrial coatings and ceramics had lost 12.66% in the past month. In that same time, the Conglomerates sector lost 7.5%, while the S&P 500 lost 8.4%.
3M will be looking to display strength as it nears its next earnings release. In that report, analysts expect 3M to post earnings of $2.66 per share. This would mark year-over-year growth of 8.57%. Meanwhile, our latest consensus estimate is calling for revenue of $8.76 billion, down 2.06% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.40 per share and revenue of $35 billion, which would represent changes of +2.77% and -1.02%, respectively, from the prior year.
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. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. 3M is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, 3M is holding a Forward P/E ratio of 10.34. For comparison, its industry has an average Forward P/E of 14.53, which means 3M is trading at a discount to the group.
Investors should also note that MMM has a PEG ratio of 1.09 right now. 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 1.57 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.