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3M (MMM) Gains But Lags Market: What You Should Know
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3M (MMM - Free Report) closed the most recent trading day at $143.61, moving +1.4% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.29%. Meanwhile, the Dow gained 1.99%, and the Nasdaq, a tech-heavy index, added 2.81%.
Heading into today, shares of the maker of Post-it notes, industrial coatings and ceramics had gained 6.71% over the past month, lagging the Conglomerates sector's gain of 14.28% and the S&P 500's gain of 19.13% in that time.
Investors will be hoping for strength from MMM as it approaches its next earnings release, which is expected to be April 28, 2020. The company is expected to report EPS of $2.02, down 9.42% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.99 billion, up 1.66% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.16 per share and revenue of $31.27 billion, which would represent changes of -10.33% and -2.7%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for MMM. 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 shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 11.62% lower. MMM is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that MMM has a Forward P/E ratio of 17.36 right now. Its industry sports an average Forward P/E of 15.61, so we one might conclude that MMM is trading at a premium comparatively.
Investors should also note that MMM has a PEG ratio of 1.83 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Diversified Operations stocks are, on average, holding a PEG ratio of 2.22 based on yesterday's closing prices.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 197, which puts it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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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3M (MMM) Gains But Lags Market: What You Should Know
3M (MMM - Free Report) closed the most recent trading day at $143.61, moving +1.4% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.29%. Meanwhile, the Dow gained 1.99%, and the Nasdaq, a tech-heavy index, added 2.81%.
Heading into today, shares of the maker of Post-it notes, industrial coatings and ceramics had gained 6.71% over the past month, lagging the Conglomerates sector's gain of 14.28% and the S&P 500's gain of 19.13% in that time.
Investors will be hoping for strength from MMM as it approaches its next earnings release, which is expected to be April 28, 2020. The company is expected to report EPS of $2.02, down 9.42% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.99 billion, up 1.66% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.16 per share and revenue of $31.27 billion, which would represent changes of -10.33% and -2.7%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for MMM. 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 shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 11.62% lower. MMM is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that MMM has a Forward P/E ratio of 17.36 right now. Its industry sports an average Forward P/E of 15.61, so we one might conclude that MMM is trading at a premium comparatively.
Investors should also note that MMM has a PEG ratio of 1.83 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Diversified Operations stocks are, on average, holding a PEG ratio of 2.22 based on yesterday's closing prices.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 197, which puts it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.