Back to top

Image: Bigstock

3M (MMM) Stock Drops Despite Market Gains: Important Facts to Note

Read MoreHide Full Article

The most recent trading session ended with 3M (MMM - Free Report) standing at $103.16, reflecting a -0.2% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.39%. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.2%.

Heading into today, shares of the maker of Post-it notes, industrial coatings and ceramics had gained 11.38% over the past month, outpacing the Conglomerates sector's gain of 7.44% and the S&P 500's gain of 5.28% in that time.

Analysts and investors alike will be keeping a close eye on the performance of 3M in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.32, indicating a 1.75% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $7.68 billion, indicating a 4.99% decline compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.12 per share and revenue of $31.76 billion, indicating changes of -9.7% and -7.23%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for 3M. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, 3M boasts a Zacks Rank of #2 (Buy).

Digging into valuation, 3M currently has a Forward P/E ratio of 11.33. This expresses a discount compared to the average Forward P/E of 17.1 of its industry.

We can also see that MMM currently has a PEG ratio of 1.54. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Diversified Operations industry had an average PEG ratio of 2.19.

The Diversified Operations industry is part of the Conglomerates sector. Currently, this industry holds a Zacks Industry Rank of 92, positioning it in the top 37% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


3M Company (MMM) - free report >>

Published in