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3M (MMM) Advances While Market Declines: Some Information for Investors

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In the latest market close, 3M (MMM - Free Report) reached $94.05, with a +0.16% movement compared to the previous day. The stock outpaced the S&P 500's daily loss of 0.11%. Elsewhere, the Dow saw an upswing of 0.12%, while the tech-heavy Nasdaq depreciated by 0.41%.

The maker of Post-it notes, industrial coatings and ceramics's shares have seen an increase of 1.08% over the last month, not keeping up with the Conglomerates sector's gain of 7.86% and the S&P 500's gain of 2.7%.

The investment community will be paying close attention to the earnings performance of 3M in its upcoming release. The company is forecasted to report an EPS of $2.11, showcasing a 7.11% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $7.77 billion, down 3.22% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $9.77 per share and revenue of $32.52 billion, which would represent changes of +5.74% and -0.5%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for 3M. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 2.03% rise in the Zacks Consensus EPS estimate. 3M currently has a Zacks Rank of #3 (Hold).

In terms of valuation, 3M is presently being traded at a Forward P/E ratio of 9.61. This represents a discount compared to its industry's average Forward P/E of 17.86.

We can additionally observe that MMM currently boasts a PEG ratio of 1.33. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Diversified Operations industry had an average PEG ratio of 2.25.

The Diversified Operations industry is part of the Conglomerates sector. Currently, this industry holds a Zacks Industry Rank of 51, positioning it in the top 21% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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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