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3M (MMM) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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The most recent trading session ended with 3M (MMM - Free Report) standing at $136.60, reflecting a -0.45% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a loss of 0.19% for the day. Meanwhile, the Dow lost 0.7%, and the Nasdaq, a tech-heavy index, added 0.04%.

The maker of Post-it notes, industrial coatings and ceramics's shares have seen an increase of 4.43% over the last month, surpassing the Conglomerates sector's loss of 4.01% and the S&P 500's gain of 1.95%.

Market participants will be closely following the financial results of 3M in its upcoming release. The company is forecasted to report an EPS of $1.92, showcasing a 28.36% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $6.09 billion, indicating a 26.78% decline compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.22 per share and a revenue of $24.37 billion, signifying shifts of -21.86% and -25.44%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for 3M. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.22% higher. Right now, 3M possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, 3M is holding a Forward P/E ratio of 19.02. This signifies a premium in comparison to the average Forward P/E of 18.83 for its industry.

We can also see that MMM currently has a PEG ratio of 2.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Diversified Operations industry stood at 1.92 at the close of the market yesterday.

The Diversified Operations industry is part of the Conglomerates sector. Currently, this industry holds a Zacks Industry Rank of 38, positioning it in the top 16% 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.

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


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