In the latest trading session, 3M (MMM) closed at $184.55, marking a -0.65% move from the previous day. This change was narrower than the S&P 500’s daily loss of 0.77%.
Heading into today, shares of the maker of Post-it notes, industrial coatings and ceramics had lost 7.78% over the past month, lagging the Conglomerates sector’s gain of 0.49% and the S&P 500’s gain of 1.55% in that time.
Investors will be hoping for strength from MMM as it approaches its next earnings release, which is expected to be October 26, 2021. In that report, analysts expect MMM to post earnings of $2.45 per share. This would mark year-over-year growth of 0.82%. Meanwhile, our latest consensus estimate is calling for revenue of $8.92 billion, up 6.79% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.11 per share and revenue of $35.38 billion. These totals would mark changes of +15.68% and +9.92%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for MMM. Recent revisions tend to reflect the latest near-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. MMM is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, MMM currently has a Forward P/E ratio of 18.38. This represents a discount compared to its industry’s average Forward P/E of 18.72.
Also, we should mention that MMM has a PEG ratio of 1.93. 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. MMM’s industry had an average PEG ratio of 1.7 as of yesterday’s close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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