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3M (MMM) Sees a More Significant Dip Than Broader Market: Some Facts to Know

The most recent trading session ended with 3M (MMM) standing at $97.56, reflecting a -1.13% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 0.74%. Meanwhile, the Dow experienced a drop of 1.06%, and the technology-dominated Nasdaq saw a decrease of 0.58%.

Heading into today, shares of the maker of Post-it notes, industrial coatings and ceramics had gained 2.25% over the past month, lagging the Conglomerates sector's gain of 4.56% and the S&P 500's gain of 4.27% in that time.

The investment community will be paying close attention to the earnings performance of 3M in its upcoming release. On that day, 3M is projected to report earnings of $1.71 per share, which would represent a year-over-year decline of 21.2%. Meanwhile, our latest consensus estimate is calling for revenue of $5.91 billion, down 29.05% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.23 per share and revenue of $24.58 billion, indicating changes of -21.75% and -24.8%, respectively, compared to the previous year.


Investors should also pay attention to any latest changes in analyst estimates for 3M. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Within the past 30 days, our consensus EPS projection has moved 11.69% lower. 3M is holding a Zacks Rank of #5 (Strong Sell) right now.

Looking at its valuation, 3M is holding a Forward P/E ratio of 13.65. This valuation marks a discount compared to its industry's average Forward P/E of 18.89.

We can also see that MMM currently has a PEG ratio of 1.82. 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 had an average PEG ratio of 1.82 as trading concluded yesterday.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% of all 250+ industries.

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.

Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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