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3M (MMM) closed the most recent trading day at $166.76, making no change from the previous trading session. This change was narrower than the S&P 500's 0.01% loss on the day. Elsewhere, the Dow gained 0.06%, while the tech-heavy Nasdaq lost 0.06%.
Prior to today's trading, shares of the maker of Post-it notes, industrial coatings and ceramics had gained 3.65% over the past month. This has lagged the Conglomerates sector's gain of 5.43% and outpaced the S&P 500's gain of 3.23% in that time.
Investors will be hoping for strength from MMM as it approaches its next earnings release. The company is expected to report EPS of $2.56, down 0.78% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.19 billion, up 0.5% from the prior-year quarter.
MMM's full-year Zacks Consensus Estimates are calling for earnings of $9.34 per share and revenue of $32.23 billion. These results would represent year-over-year changes of -10.71% and -1.64%, respectively.
Any recent changes to analyst estimates for MMM should also be noted by investors. 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. 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 remained stagnant. MMM is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, MMM is currently trading at a Forward P/E ratio of 17.86. This valuation marks a premium compared to its industry's average Forward P/E of 16.73.
Also, we should mention that MMM has a PEG ratio of 1.88. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Diversified Operations stocks are, on average, holding a PEG ratio of 1.88 based on yesterday's closing prices.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 28, putting it in the top 11% of all 250+ industries.