In the latest trading session, 3M (MMM - Free Report) closed at $178.03, marking a -0.76% move from the previous day. This change lagged the S&P 500's daily gain of 0.03%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq gained 0.14%.
Heading into today, shares of the maker of Post-it notes, industrial coatings and ceramics had gained 1.53% over the past month, lagging the Conglomerates sector's gain of 4.05% and the S&P 500's gain of 3.23% in that time.
MMM will be looking to display strength as it nears its next earnings release, which is expected to be January 28, 2020. The company is expected to report EPS of $2.10, down 9.09% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.13 billion, up 2.28% from the prior-year quarter.
Any recent changes to analyst estimates for MMM should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate has moved 0.1% higher within the past month. MMM is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that MMM has a Forward P/E ratio of 18.68 right now. This valuation marks a premium compared to its industry's average Forward P/E of 16.99.
Meanwhile, MMM's PEG ratio is currently 1.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Diversified Operations industry currently had an average PEG ratio of 2.02 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 29% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.