Yahoo Finance 3M (MMM) Exceeds Market Returns: Some Facts to Consider
3M (MMM) closed the latest trading day at $104.59, indicating a +1.91% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.86%. On the other hand, the Dow registered a gain of 1.22%, and the technology-centric Nasdaq increased by 0.51%.
The maker of Post-it notes, industrial coatings and ceramics's stock has climbed by 11.19% in the past month, exceeding the Conglomerates sector's gain of 4.42% and the S&P 500's gain of 2.84%.
The investment community will be paying close attention to the earnings performance of 3M in its upcoming release. The company is predicted to post an EPS of $2.11, indicating a 7.11% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.77 billion, down 3.22% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.77 per share and a revenue of $32.52 billion, signifying shifts of +5.74% and -0.5%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for 3M. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, 3M boasts a Zacks Rank of #3 (Hold).
With respect to valuation, 3M is currently being traded at a Forward P/E ratio of 10.51. Its industry sports an average Forward P/E of 17.74, so one might conclude that 3M is trading at a discount comparatively.
One should further note that MMM currently holds a PEG ratio of 1.45. 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 2.26 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. With its current Zacks Industry Rank of 26, this industry ranks in the top 11% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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3M Company (MMM) : Free Stock Analysis Report