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3M (MMM) Gains As Market Dips: What You Should Know

Zacks Equity Research
·3-min read

3M (MMM) closed the most recent trading day at $162.55, moving +0.83% from the previous trading session. This change outpaced the S&P 500's 0.34% loss on the day. At the same time, the Dow added 0.05%, and the tech-heavy Nasdaq lost 0.69%.

Wall Street will be looking for positivity from MMM as it approaches its next earnings report date. The company is expected to report EPS of $1.71, down 22.27% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7 billion, down 14.35% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.92 per share and revenue of $30.43 billion, which would represent changes of -12.97% and -5.32%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for MMM. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.36% higher. MMM is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, MMM is holding a Forward P/E ratio of 20.35. Its industry sports an average Forward P/E of 20.48, so we one might conclude that MMM is trading at a discount comparatively.

Also, we should mention that MMM has a PEG ratio of 2.14. 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. Diversified Operations stocks are, on average, holding a PEG ratio of 3.21 based on yesterday's closing prices.

The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 219, which puts it in the bottom 14% 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.

To follow MMM in the coming trading sessions, be sure to utilize Zacks.com.


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