3M (MMM) closed the most recent trading day at $159.84, moving +0.35% from the previous trading session. This move outpaced the S&P 500’s daily loss of 0.62%. Meanwhile, the Dow lost 0.69%, and the Nasdaq, a tech-heavy index, lost 0.94%.
Prior to today’s trading, shares of the maker of Post-it notes, industrial coatings and ceramics had gained 2.99% over the past month. This has lagged the Conglomerates sector’s gain of 6.22% and the S&P 500’s gain of 3.51% in that time.
Wall Street will be looking for positivity from MMM as it approaches its next earnings report date. This is expected to be July 28, 2020. On that day, MMM is projected to report earnings of $1.77 per share, which would represent a year-over-year decline of 19.55%. Meanwhile, our latest consensus estimate is calling for revenue of $7.27 billion, down 11.04% from the prior-year quarter.
MMM’s full-year Zacks Consensus Estimates are calling for earnings of $7.99 per share and revenue of $30.86 billion. These results would represent year-over-year changes of -12.2% and -3.97%, respectively.
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 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. The Zacks Consensus EPS estimate has moved 1.07% higher within the past month. MMM is currently a Zacks Rank #3 (Hold).
Digging into valuation, MMM currently has a Forward P/E ratio of 19.93. This valuation marks a discount compared to its industry’s average Forward P/E of 20.07.
Also, we should mention that MMM has a PEG ratio of 2.1. 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 2.99 as of yesterday’s close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 114, putting it in the top 45% 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.