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3M (MMM) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, 3M (MMM - Free Report) closed at $102.86, marking a +1.27% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.85%. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, added 5.61%.
Coming into today, shares of the maker of Post-it notes, industrial coatings and ceramics had lost 0.37% in the past month. In that same time, the Conglomerates sector gained 3.05%, while the S&P 500 gained 3.18%.
Investors will be hoping for strength from 3M as it approaches its next earnings release, which is expected to be July 25, 2023. On that day, 3M is projected to report earnings of $1.65 per share, which would represent a year-over-year decline of 33.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.87 billion, down 9.58% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.73 per share and revenue of $32.11 billion. These totals would mark changes of -13.56% and -6.19%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for 3M. 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.
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 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. Within the past 30 days, our consensus EPS projection has moved 0.13% lower. 3M is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note 3M's current valuation metrics, including its Forward P/E ratio of 11.64. For comparison, its industry has an average Forward P/E of 16.19, which means 3M is trading at a discount to the group.
We can also see that MMM currently has a PEG ratio of 1.23. 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 1.88 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 101, putting it in the top 41% 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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3M (MMM) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, 3M (MMM - Free Report) closed at $102.86, marking a +1.27% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.85%. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, added 5.61%.
Coming into today, shares of the maker of Post-it notes, industrial coatings and ceramics had lost 0.37% in the past month. In that same time, the Conglomerates sector gained 3.05%, while the S&P 500 gained 3.18%.
Investors will be hoping for strength from 3M as it approaches its next earnings release, which is expected to be July 25, 2023. On that day, 3M is projected to report earnings of $1.65 per share, which would represent a year-over-year decline of 33.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.87 billion, down 9.58% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.73 per share and revenue of $32.11 billion. These totals would mark changes of -13.56% and -6.19%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for 3M. 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.
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 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. Within the past 30 days, our consensus EPS projection has moved 0.13% lower. 3M is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note 3M's current valuation metrics, including its Forward P/E ratio of 11.64. For comparison, its industry has an average Forward P/E of 16.19, which means 3M is trading at a discount to the group.
We can also see that MMM currently has a PEG ratio of 1.23. 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 1.88 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 101, putting it in the top 41% 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.