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

3M (MMM) ended the recent trading session at $92.61, demonstrating a +0.74% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.15%. On the other hand, the Dow registered a loss of 0.02%, and the technology-centric Nasdaq increased by 0.32%.

Shares of the maker of Post-it notes, industrial coatings and ceramics have depreciated by 2.25% over the course of the past month, outperforming the Conglomerates sector's loss of 5.92% and lagging the S&P 500's gain of 1.65%.

Market participants will be closely following the financial results of 3M in its upcoming release. The company's earnings per share (EPS) are projected to be $2.08, reflecting a 5.58% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $7.64 billion, indicating a 4.83% decline compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.97 per share and revenue of $32.46 billion, indicating changes of -2.92% and -0.69%, respectively, compared to the previous year.

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Any recent changes to analyst estimates for 3M should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 8.12% lower. At present, 3M boasts a Zacks Rank of #3 (Hold).

In terms of valuation, 3M is currently trading at a Forward P/E ratio of 10.24. This expresses a discount compared to the average Forward P/E of 18.36 of its industry.

We can also see that MMM currently has a PEG ratio of 1.59. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Diversified Operations industry had an average PEG ratio of 2.04 as trading concluded yesterday.

The Diversified Operations industry is part of the Conglomerates sector. With its current Zacks Industry Rank of 44, this industry ranks in the top 18% of all industries, numbering over 250.

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 Company (MMM) : Free Stock Analysis Report

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