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

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The latest trading session saw 3M (MMM - Free Report) ending at $87.06, denoting a -1.52% adjustment from its last day's close. The stock's change was less than the S&P 500's daily loss of 0.85%. Meanwhile, the Dow experienced a drop of 0.75%, and the technology-dominated Nasdaq saw a decrease of 0.96%.

Shares of the maker of Post-it notes, industrial coatings and ceramics witnessed a loss of 10.7% over the previous month, trailing the performance of the Conglomerates sector with its loss of 9.8% and the S&P 500's loss of 3.02%.

The investment community will be paying close attention to the earnings performance of 3M in its upcoming release. The company is slated to reveal its earnings on October 24, 2023. The company's earnings per share (EPS) are projected to be $2.34, reflecting a 13.01% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $7.95 billion, down 7.73% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.93 per share and revenue of $31.61 billion. These totals would mark changes of -11.58% and -7.65%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for 3M. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 shifted 0.27% downward. 3M presently features a Zacks Rank of #3 (Hold).

From a valuation perspective, 3M is currently exchanging hands at a Forward P/E ratio of 9.9. This indicates a discount in contrast to its industry's Forward P/E of 15.46.

Meanwhile, MMM's PEG ratio is currently 1.37. 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. As of the close of trade yesterday, the Diversified Operations industry held an average PEG ratio of 1.79.

The Diversified Operations industry is part of the Conglomerates sector. With its current Zacks Industry Rank of 69, this industry ranks in the top 28% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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