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Here's Why 3M (MMM) Gained But Lagged the Market Today

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The latest trading session saw 3M (MMM - Free Report) ending at $93.18, denoting a +0.59% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.74%. Meanwhile, the Dow experienced a drop of 0.01%, and the technology-dominated Nasdaq saw an increase of 1.68%.

Shares of the maker of Post-it notes, industrial coatings and ceramics witnessed a loss of 10.99% over the previous month, beating the performance of the Conglomerates sector with its loss of 11.97% and underperforming the S&P 500's gain of 0.8%.

The investment community will be paying close attention to the earnings performance of 3M in its upcoming release. The company is slated to reveal its earnings on April 30, 2024. It is anticipated that the company will report an EPS of $2.08, marking a 5.58% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.64 billion, indicating a 4.83% 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 $8.79 per share and revenue of $32.21 billion. These totals would mark changes of -4.87% and -1.43%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 9.98% lower within the past month. Currently, 3M is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, 3M is currently being traded at a Forward P/E ratio of 10.54. For comparison, its industry has an average Forward P/E of 18.25, which means 3M is trading at a discount to the group.

Investors should also note that MMM has a PEG ratio of 1.64 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Diversified Operations industry currently had an average PEG ratio of 1.78 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. With its current Zacks Industry Rank of 57, this industry ranks in the top 23% of all industries, numbering over 250.

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.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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