3M (MMM) closed at $204.07 in the latest trading session, marking a +1.38% move from the prior day. This change outpaced the S&P 500's 0.25% loss on the day. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq lost 0.53%.
Heading into today, shares of the maker of Post-it notes, industrial coatings and ceramics had lost 0.43% over the past month, outpacing the Conglomerates sector's loss of 9.93% and the S&P 500's loss of 2.35% in that time.
MMM will be looking to display strength as it nears its next earnings release, which is expected to be January 24, 2019. The company is expected to report EPS of $2.29, up 9.05% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.99 billion, unchanged from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.02 per share and revenue of $32.85 billion, which would represent changes of +9.27% and +3.78%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for MMM. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.52% lower. MMM is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, MMM currently has a Forward P/E ratio of 20.1. This valuation marks a premium compared to its industry's average Forward P/E of 17.95.
It is also worth noting that MMM currently has a PEG ratio of 1.98. 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 1.92 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 111, putting it in the top 43% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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