In the latest trading session, 3M (MMM) closed at $168.93, marking a +0.38% move from the previous day. This change outpaced the S&P 500's 0.04% loss on the day. At the same time, the Dow lost 0.05%, and the tech-heavy Nasdaq lost 0.01%.
Coming into today, shares of the maker of Post-it notes, industrial coatings and ceramics had lost 3.32% in the past month. In that same time, the Conglomerates sector lost 1.26%, while the S&P 500 gained 0.34%.
Wall Street will be looking for positivity from MMM as it approaches its nex t earnings report date. On that day, MMM is projected to report earnings of $2.04 per share, which would represent a year-over-year decline of 21.24%. Meanwhile, our latest consensus estimate is calling for revenue of $8.04 billion, down 4.18% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.31 per share and revenue of $32.24 billion. These totals would mark changes of -10.99% and -1.6%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for MMM. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 1.45% lower within the past month. MMM currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that MMM has a Forward P/E ratio of 18.07 right now. This valuation marks a premium compared to its industry's average Forward P/E of 16.51.
Also, we should mention that MMM has a PEG ratio of 1.78. 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. The Diversified Operations was holding an average PEG ratio of 1.83 at yesterday's closing price.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 39% 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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