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3M (MMM) Ascends But Remains Behind Market: Some Facts to Note

In the latest trading session, 3M (MMM) closed at $92.98, marking a +0.38% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 1.2%. Meanwhile, the Dow experienced a rise of 0.69%, and the technology-dominated Nasdaq saw an increase of 1.59%.

The the stock of maker of Post-it notes, industrial coatings and ceramics has fallen by 11.66% in the past month, lagging the Conglomerates sector's loss of 9.82% and the S&P 500's loss of 4.16%.

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. The company is predicted to post an EPS of $1.93, indicating a 2.03% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $7.64 billion, down 4.83% from the year-ago period.

MMM's full-year Zacks Consensus Estimates are calling for earnings of $7.87 per share and revenue of $32.21 billion. These results would represent year-over-year changes of -14.83% and -1.43%, respectively.

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Investors might also notice recent changes to analyst estimates for 3M. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 19.45% lower. Currently, 3M is carrying a Zacks Rank of #3 (Hold).

Looking at its valuation, 3M is holding a Forward P/E ratio of 11.77. For comparison, its industry has an average Forward P/E of 17.9, which means 3M is trading at a discount to the group.

We can additionally observe that MMM currently boasts a PEG ratio of 1.83. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Diversified Operations was holding an average PEG ratio of 2.04 at yesterday's closing price.

The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 181, which puts it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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3M Company (MMM) : Free Stock Analysis Report

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