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) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
3M (MMM - Free Report) closed the most recent trading day at $199.86, moving +1.51% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.34%.
Heading into today, shares of the maker of Post-it notes, industrial coatings and ceramics had lost 3.29% over the past month, lagging the Conglomerates sector's gain of 0.77% and the S&P 500's gain of 2.71% in that time.
MMM will be looking to display strength as it nears its next earnings release, which is expected to be July 27, 2021. In that report, analysts expect MMM to post earnings of $2.20 per share. This would mark year-over-year growth of 23.6%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.41 billion, up 17.26% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.78 per share and revenue of $34.99 billion. These totals would mark changes of +11.9% and +8.71%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for MMM. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. Within the past 30 days, our consensus EPS projection has moved 0.51% higher. MMM currently has a Zacks Rank of #2 (Buy).
In terms of valuation, MMM is currently trading at a Forward P/E ratio of 20.13. For comparison, its industry has an average Forward P/E of 20.43, which means MMM is trading at a discount to the group.
We can also see that MMM currently has a PEG ratio of 2.12. 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 industry currently had an average PEG ratio of 1.74 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 58, putting it in the top 23% 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.
Be sure to follow all of these stock-moving metrics, and many 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) Outpaces Stock Market Gains: What You Should Know
3M (MMM - Free Report) closed the most recent trading day at $199.86, moving +1.51% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.34%.
Heading into today, shares of the maker of Post-it notes, industrial coatings and ceramics had lost 3.29% over the past month, lagging the Conglomerates sector's gain of 0.77% and the S&P 500's gain of 2.71% in that time.
MMM will be looking to display strength as it nears its next earnings release, which is expected to be July 27, 2021. In that report, analysts expect MMM to post earnings of $2.20 per share. This would mark year-over-year growth of 23.6%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.41 billion, up 17.26% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.78 per share and revenue of $34.99 billion. These totals would mark changes of +11.9% and +8.71%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for MMM. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. Within the past 30 days, our consensus EPS projection has moved 0.51% higher. MMM currently has a Zacks Rank of #2 (Buy).
In terms of valuation, MMM is currently trading at a Forward P/E ratio of 20.13. For comparison, its industry has an average Forward P/E of 20.43, which means MMM is trading at a discount to the group.
We can also see that MMM currently has a PEG ratio of 2.12. 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 industry currently had an average PEG ratio of 1.74 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 58, putting it in the top 23% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.