In the latest trading session, 3M (MMM) closed at $103.48, marking a +0.46% move from the previous day. This change outpaced the S&P 500's 0.24% gain on the day. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq lost 7.84%.
Prior to today's trading, shares of the maker of Post-it notes, industrial coatings and ceramics had gained 0.69% over the past month. This has lagged the Conglomerates sector's gain of 1.72% and the S&P 500's gain of 3.39% in that time.
Wall Street will be looking for positivity from 3M as it approaches its next earnings report date. This is expected to be July 25, 2023. The company is expected to report EPS of $1.65, down 33.47% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.95 billion, down 8.58% from the year-ago period.
MMM's full-year Zacks Consensus Estimates are calling for earnings of $8.73 per share and revenue of $32.11 billion. These results would represent year-over-year changes of -13.56% and -6.18%, respectively.
Investors should also note any recent changes to analyst estimates for 3M. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% lower. 3M is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that 3M has a Forward P/E ratio of 11.8 right now. Its industry sports an average Forward P/E of 16.33, so we one might conclude that 3M is trading at a discount comparatively.
Also, we should mention that MMM has a PEG ratio of 1.24. 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 was holding an average PEG ratio of 1.91 at yesterday's closing price.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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