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3M (MMM) Stock Moves -1.86%: What You Should Know

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3M (MMM - Free Report) closed at $130.33 in the latest trading session, marking a -1.86% move from the prior day. This change was narrower than the S&P 500's daily loss of 2.01%. At the same time, the Dow lost 1.56%, and the tech-heavy Nasdaq lost 0.2%.

Coming into today, shares of the maker of Post-it notes, industrial coatings and ceramics had lost 11.18% in the past month. In that same time, the Conglomerates sector lost 8.2%, while the S&P 500 lost 6.08%.

3M will be looking to display strength as it nears its next earnings release. On that day, 3M is projected to report earnings of $2.56 per share, which would represent a year-over-year decline of 1.16%. Our most recent consensus estimate is calling for quarterly revenue of $8.85 billion, down 1.13% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.80 per share and revenue of $35.87 billion, which would represent changes of +6.72% and +1.45%, 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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 0.54% lower. 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 12.3. This valuation marks a discount compared to its industry's average Forward P/E of 15.75.

We can also see that MMM currently has a PEG ratio of 1.29. 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. Diversified Operations stocks are, on average, holding a PEG ratio of 1.27 based on yesterday's closing prices.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 61, putting it in the top 25% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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