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) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
3M (MMM - Free Report) closed at $102.78 in the latest trading session, marking a -0.7% move from the prior day. This move lagged the S&P 500's daily gain of 1.68%. At the same time, the Dow added 1.06%, and the tech-heavy Nasdaq lost 1.7%.
Heading into today, shares of the maker of Post-it notes, industrial coatings and ceramics had lost 10.22% over the past month, lagging the Conglomerates sector's loss of 4.17% and the S&P 500's loss of 6.68% in that time.
3M will be looking to display strength as it nears its next earnings release. In that report, analysts expect 3M to post earnings of $1.60 per share. This would mark a year-over-year decline of 39.62%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.47 billion, down 15.42% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.64 per share and revenue of $31.45 billion. These totals would mark changes of -14.46% and -8.12%, respectively, from last year.
Any recent changes to analyst estimates for 3M should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. 3M is currently a Zacks Rank #4 (Sell).
In terms of valuation, 3M is currently trading at a Forward P/E ratio of 11.97. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 11.97.
It is also worth noting that MMM currently has a PEG ratio of 1.26. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MMM's industry had an average PEG ratio of 1.46 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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) Stock Sinks As Market Gains: What You Should Know
3M (MMM - Free Report) closed at $102.78 in the latest trading session, marking a -0.7% move from the prior day. This move lagged the S&P 500's daily gain of 1.68%. At the same time, the Dow added 1.06%, and the tech-heavy Nasdaq lost 1.7%.
Heading into today, shares of the maker of Post-it notes, industrial coatings and ceramics had lost 10.22% over the past month, lagging the Conglomerates sector's loss of 4.17% and the S&P 500's loss of 6.68% in that time.
3M will be looking to display strength as it nears its next earnings release. In that report, analysts expect 3M to post earnings of $1.60 per share. This would mark a year-over-year decline of 39.62%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.47 billion, down 15.42% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.64 per share and revenue of $31.45 billion. These totals would mark changes of -14.46% and -8.12%, respectively, from last year.
Any recent changes to analyst estimates for 3M should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. 3M is currently a Zacks Rank #4 (Sell).
In terms of valuation, 3M is currently trading at a Forward P/E ratio of 11.97. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 11.97.
It is also worth noting that MMM currently has a PEG ratio of 1.26. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MMM's industry had an average PEG ratio of 1.46 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.