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3M (MMM) Dips More Than Broader Markets: What You Should Know

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3M (MMM - Free Report) closed at $173.08 in the latest trading session, marking a -0.54% move from the prior day. This move lagged the S&P 500's daily loss of 0.44%. Meanwhile, the Dow lost 0.62%, and the Nasdaq, a tech-heavy index, added 0.5%.

Coming into today, shares of the maker of Post-it notes, industrial coatings and ceramics had gained 4.17% in the past month. In that same time, the Conglomerates sector gained 6.06%, while the S&P 500 gained 2.71%.

MMM will be looking to display strength as it nears its next earnings release. In that report, analysts expect MMM to post earnings of $2.25 per share. This would mark year-over-year growth of 15.38%. Our most recent consensus estimate is calling for quarterly revenue of $8.25 billion, up 1.72% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.61 per share and revenue of $31.91 billion. These totals would mark changes of -5.38% and -0.71%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for MMM. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 0.53% higher. MMM is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, MMM is holding a Forward P/E ratio of 20.21. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 20.21.

Also, we should mention that MMM has a PEG ratio of 2.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MMM's industry had an average PEG ratio of 2.13 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 107, putting it in the top 42% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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