3M (MMM) Gains But Lags Market: What You Should Know
3M (MMM) closed at $101.14 in the latest trading session, marking a +0.14% move from the prior day. This change lagged the S&P 500's 0.56% gain on the day. Meanwhile, the Dow gained 0.41%, and the Nasdaq, a tech-heavy index, added 1.35%.
Coming into today, shares of the maker of Post-it notes, industrial coatings and ceramics had lost 7.26% in the past month. In that same time, the Conglomerates sector lost 1.63%, while the S&P 500 lost 1.48%.
3M will be looking to display strength as it nears its next earnings release. On that day, 3M is projected to report earnings of $1.59 per share, which would represent a year-over-year decline of 40%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.47 billion, down 15.36% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.65 per share and revenue of $31.86 billion, which would represent changes of -14.36% and -6.91%, respectively, from the prior year.
Any recent changes to analyst estimates for 3M should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.03% higher. 3M currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, 3M is holding a Forward P/E ratio of 11.68. This valuation marks a discount compared to its industry's average Forward P/E of 16.76.
Also, we should mention that MMM has a PEG ratio of 1.23. 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 Diversified Operations industry currently had an average PEG ratio of 1.41 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 34% of all 250+ industries.
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.
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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