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3M (MMM) Gains But Lags Market: What You Should Know

3M (MMM) closed the most recent trading day at $100.77, moving +0.24% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.25%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.03%.

The the stock of maker of Post-it notes, industrial coatings and ceramics has fallen by 4.45% in the past month, lagging the Conglomerates sector's loss of 1.24% and the S&P 500's gain of 3.34%.

The investment community will be paying close attention to the earnings performance of 3M in its upcoming release. The company's upcoming EPS is projected at $1.71, signifying a 21.2% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $5.91 billion, showing a 29.05% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $7.09 per share and a revenue of $23.54 billion, demonstrating changes of -23.27% and -27.96%, respectively, from the preceding year.

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It is also important to note the recent changes to analyst estimates for 3M. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, 3M possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, 3M is holding a Forward P/E ratio of 14.18. This denotes a discount relative to the industry's average Forward P/E of 17.58.

One should further note that MMM currently holds a PEG ratio of 1.89. 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. MMM's industry had an average PEG ratio of 1.89 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. With its current Zacks Industry Rank of 35, this industry ranks in the top 14% of all industries, numbering over 250.

The Zacks Industry Rank is ordered 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.

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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