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3M (MMM) Falls More Steeply Than Broader Market: What Investors Need to Know

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3M (MMM - Free Report) closed the most recent trading day at $91.46, moving -0.91% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.17%. Elsewhere, the Dow saw a downswing of 0.06%, while the tech-heavy Nasdaq depreciated by 0.55%.

Prior to today's trading, shares of the maker of Post-it notes, industrial coatings and ceramics had lost 3.6% over the past month. This has lagged the Conglomerates sector's gain of 7.17% and the S&P 500's gain of 3.98% in that time.

The investment community will be paying close attention to the earnings performance of 3M in its upcoming release. The company's upcoming EPS is projected at $2.11, signifying a 7.11% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.77 billion, indicating a 3.22% decrease compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.77 per share and revenue of $32.52 billion. These totals would mark changes of +5.74% and -0.5%, respectively, from last year.

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.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, there's been a 1.87% rise in the Zacks Consensus EPS estimate. 3M is currently a Zacks Rank #3 (Hold).

In terms of valuation, 3M is presently being traded at a Forward P/E ratio of 9.45. This signifies a discount in comparison to the average Forward P/E of 17.32 for its industry.

We can additionally observe that MMM currently boasts a PEG ratio of 1.31. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Diversified Operations industry currently had an average PEG ratio of 2.31 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 28, which puts it in the top 12% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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