New Zealand markets close in 7 minutes
  • NZX 50

    -39.53 (-0.35%)

    -0.0024 (-0.40%)

    -0.0015 (-0.26%)

    -86.70 (-1.20%)
  • ASX 200

    -81.40 (-1.16%)
  • OIL

    -0.70 (-0.79%)
  • GOLD

    -13.00 (-0.70%)

    +122.33 (+0.83%)
  • FTSE

    -97.36 (-1.28%)
  • Dow Jones

    -74.15 (-0.22%)
  • DAX

    -139.37 (-0.91%)
  • Hang Seng

    -546.28 (-3.07%)
  • NIKKEI 225

    -385.55 (-1.21%)

    -0.3220 (-0.36%)

3M (MMM) Outpaces Stock Market Gains: What You Should Know

3M (MMM) closed at $94.28 in the latest trading session, marking a +1.04% move from the prior day. This move outpaced the S&P 500's daily gain of 0.99%.

Coming into today, shares of the maker of Post-it notes, industrial coatings and ceramics had lost 9.26% in the past month. In that same time, the Conglomerates sector lost 1.44%, while the S&P 500 gained 0.42%.

Wall Street will be looking for positivity from 3M as it approaches its next earnings report date. The company is expected to report EPS of $1.74, down 29.84% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.81 billion, down 10.2% from the year-ago period.

MMM's full-year Zacks Consensus Estimates are calling for earnings of $8.66 per share and revenue of $32.09 billion. These results would represent year-over-year changes of -14.26% and -6.25%, respectively.

It is also important to note the recent changes to analyst estimates for 3M. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. Within the past 30 days, our consensus EPS projection remained stagnant. 3M is currently a Zacks Rank #3 (Hold).

Investors should also note 3M's current valuation metrics, including its Forward P/E ratio of 10.78. This valuation marks a discount compared to its industry's average Forward P/E of 14.83.

Also, we should mention that MMM has a PEG ratio of 1.13. 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 1.67 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 178, putting it in the bottom 30% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

3M Company (MMM) : Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research