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3M (MMM) closed the most recent trading day at $176.28, moving -0.38% from the previous trading session. This change was narrower than the S&P 500’s 0.69% loss on the day.
Prior to today’s trading, shares of the maker of Post-it notes, industrial coatings and ceramics had lost 4.12% over the past month. This has was narrower than the Conglomerates sector’s loss of 4.52% and lagged the S&P 500’s loss of 2.58% 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 October 26, 2021. In that report, analysts expect MMM to post earnings of $2.22 per share. This would mark a year-over-year decline of 8.64%. Meanwhile, our latest consensus estimate is calling for revenue of $8.75 billion, up 4.79% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.81 per share and revenue of $35.25 billion, which would represent changes of +12.24% and +9.51%, respectively, from the prior year.
It is also important to note the 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 2.94% lower within the past month. MMM is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, MMM currently has a Forward P/E ratio of 18.03. This represents a premium compared to its industry’s average Forward P/E of 17.17.
Also, we should mention that MMM has a PEG ratio of 1.9. 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. The Diversified Operations industry currently had an average PEG ratio of 1.7 as of yesterday’s close.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Tech IPOs With Massive Profit Potential
In the past few years, many popular platforms and like Uber and Airbnb finally made their way to the public markets. But the biggest paydays came from lesser-known names.
For example, electric carmaker X Peng shot up +299.4% in just 2 months. Think of it this way…
If you had put $5,000 into XPEV at its IPO in September 2020, you could have cashed out with $19,970 in November.
With record amounts of cash flooding into IPOs and a record-setting stock market, this year’s lineup could be even more lucrative.
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