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3M (MMM) Dips More Than Broader Markets: What You Should Know
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3M (MMM - Free Report) closed at $172.64 in the latest trading session, marking a -1.21% move from the prior day. This change lagged the S&P 500's daily loss of 1.14%. Meanwhile, the Dow lost 1.23%, and the Nasdaq, a tech-heavy index, lost 0.36%.
Prior to today's trading, shares of the maker of Post-it notes, industrial coatings and ceramics had lost 2.5% over the past month. This has was narrower than the Conglomerates sector's loss of 4.09% and lagged the S&P 500's loss of 1.37% in that time.
Investors will be hoping for strength from 3M as it approaches its next earnings release. On that day, 3M is projected to report earnings of $2.06 per share, which would represent a year-over-year decline of 13.45%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.66 billion, up 0.88% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.86 per share and revenue of $35.48 billion, which would represent changes of +12.81% and +10.23%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for 3M. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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 has moved 0.07% lower. 3M is currently a Zacks Rank #3 (Hold).
In terms of valuation, 3M is currently trading at a Forward P/E ratio of 17.72. For comparison, its industry has an average Forward P/E of 17.72, which means 3M is trading at a no noticeable deviation to the group.
It is also worth noting that MMM currently has a PEG ratio of 1.86. 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 was holding an average PEG ratio of 1.67 at yesterday's closing price.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% 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.
To follow MMM in the coming trading sessions, be sure to utilize Zacks.com.
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3M (MMM) Dips More Than Broader Markets: What You Should Know
3M (MMM - Free Report) closed at $172.64 in the latest trading session, marking a -1.21% move from the prior day. This change lagged the S&P 500's daily loss of 1.14%. Meanwhile, the Dow lost 1.23%, and the Nasdaq, a tech-heavy index, lost 0.36%.
Prior to today's trading, shares of the maker of Post-it notes, industrial coatings and ceramics had lost 2.5% over the past month. This has was narrower than the Conglomerates sector's loss of 4.09% and lagged the S&P 500's loss of 1.37% in that time.
Investors will be hoping for strength from 3M as it approaches its next earnings release. On that day, 3M is projected to report earnings of $2.06 per share, which would represent a year-over-year decline of 13.45%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.66 billion, up 0.88% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.86 per share and revenue of $35.48 billion, which would represent changes of +12.81% and +10.23%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for 3M. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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 has moved 0.07% lower. 3M is currently a Zacks Rank #3 (Hold).
In terms of valuation, 3M is currently trading at a Forward P/E ratio of 17.72. For comparison, its industry has an average Forward P/E of 17.72, which means 3M is trading at a no noticeable deviation to the group.
It is also worth noting that MMM currently has a PEG ratio of 1.86. 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 was holding an average PEG ratio of 1.67 at yesterday's closing price.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% 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.
To follow MMM in the coming trading sessions, be sure to utilize Zacks.com.