3M (MMM - Free Report) closed the most recent trading day at $166.31, moving -1.89% from the previous trading session. This change was narrower than the S&P 500's 3.51% loss on the day. Elsewhere, the Dow lost 2.78%, while the tech-heavy Nasdaq lost 4.96%.
Heading into today, shares of the maker of Post-it notes, industrial coatings and ceramics had gained 9.11% over the past month, lagging the Conglomerates sector's gain of 9.15% and the S&P 500's gain of 9.58% in that time.
MMM will be looking to display strength as it nears its next earnings release. In that report, analysts expect MMM to post earnings of $2.15 per share. This would mark a year-over-year decline of 16.67%. Our most recent consensus estimate is calling for quarterly revenue of $7.99 billion, down 0.02% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.23 per share and revenue of $31.68 billion. These totals would mark changes of -9.56% and -1.43%, respectively, from last year.
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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 0.7% higher. MMM is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, MMM currently has a Forward P/E ratio of 20.6. This represents a premium compared to its industry's average Forward P/E of 19.55.
Meanwhile, MMM's PEG ratio is currently 2.17. 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 was holding an average PEG ratio of 2.71 at yesterday's closing price.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% 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.