3M (MMM) closed the most recent trading day at $182.66, moving -0.83% from the previous trading session. This move lagged the S&P 500’s daily loss of 0.16%.
Heading into today, shares of the maker of Post-it notes, industrial coatings and ceramics had lost 6.27% over the past month, lagging the Conglomerates sector’s loss of 2.11% and the S&P 500’s gain of 0.46% in that time.
MMM will be looking to display strength as it nears its next earnings release, which is expected to be October 26, 2021. The company is expected to report EPS of $2.45, up 0.82% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.92 billion, up 6.79% from the year-ago period.
MMM’s full-year Zacks Consensus Estimates are calling for earnings of $10.11 per share and revenue of $35.38 billion. These results would represent year-over-year changes of +15.68% and +9.92%, respectively.
Investors should also note any recent changes to analyst estimates for MMM. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 remained stagnant. MMM is currently a Zacks Rank #3 (Hold).
Investors should also note MMM’s current valuation metrics, including its Forward P/E ratio of 18.22. This valuation marks a discount compared to its industry’s average Forward P/E of 18.85.
We can also see that MMM currently has a PEG ratio of 1.92. 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 1.7 at yesterday’s closing price.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 15% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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