News

3M Company (MMM) shares soared 5.4% in the last trading session to close at $104.07. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.5% gain over the past four weeks.

3M’s rally is primarily driven by optimism over the strong momentum in its advanced materials, commercial solutions and auto original equipment manufacturer businesses. Backed by strength across its businesses, the company recently raised its earnings guidance for the first quarter of 2024, which instills optimism. 3M currently anticipates adjusted earnings in the range of $2.05-$2.20 per share for the quarter, up from $2.00-$2.15 projected earlier.

This maker of Post-it notes, industrial coatings and ceramics is expected to post quarterly earnings of $2.11 per share in its upcoming report, which represents a year-over-year change of +7.1%. Revenues are expected to be $7.77 billion, down 3.2% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For 3M, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on MMM going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

3M is a member of the Zacks Diversified Operations industry. One other stock in the same industry, LSB (LXU), finished the last trading session 0.1% higher at $7.39. LXU has returned -4.5% over the past month.

LSB's consensus EPS estimate for the upcoming report has changed -52.9% over the past month to $0.10. Compared to the company's year-ago EPS, this represents a change of -60%. LSB currently boasts a Zacks Rank of #4 (Sell).

Only $1 to See All Zacks' Buys and Sells

We're not kidding.

Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.

Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.

See Stocks Now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.