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

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3M (MMM - Free Report) closed at $178.48 in the latest trading session, marking a +0.11% move from the prior day. This change outpaced the S&P 500's 0.97% loss on the day. Meanwhile, the Dow lost 0.96%, and the Nasdaq, a tech-heavy index, added 0.23%.

Prior to today's trading, shares of the maker of Post-it notes, industrial coatings and ceramics had gained 3.1% over the past month. This has outpaced the Conglomerates sector's gain of 0.46% and the S&P 500's loss of 0.78% in that time.

Investors will be hoping for strength from 3M as it approaches its next earnings release. In that report, analysts expect 3M to post earnings of $2.03 per share. This would mark a year-over-year decline of 14.71%. Meanwhile, our latest consensus estimate is calling for revenue of $8.6 billion, up 0.25% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for 3M. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.38% higher within the past month. 3M currently has a Zacks Rank of #3 (Hold).

Investors should also note 3M's current valuation metrics, including its Forward P/E ratio of 16.92. For comparison, its industry has an average Forward P/E of 18.19, which means 3M is trading at a discount to the group.

Also, we should mention that MMM has a PEG ratio of 1.78. 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 1.29 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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