Stock Valuation Recap for 3M Company (NYSE:MMM)

Focusing in on the valuation of 3M Company (NYSE:MMM), we can take a look at several ratios. One of the quickest ways to determine the projected value of a stock is the price to earnings growth, or PEG ratio. This formula was popularized by Peter Lynch and according to his calculations, a stock which is fairly valued will have a price to earnings ratio equal to its rate of growth. Simply put, a stock with a PEG ratio of 1 would be considered fairly valued.

A stock with a ratio of under 1.0 would be undervalued and a stock with a PEG over 1.0 would be considered over valued. 3M Company currently has a PEG ratio of 2.43.Keeping an eye on the all the day to day happenings in the stock market can be quite a task. Investors may need to try to focus in on the most important information when attempting to examine stocks to add to the portfolio. As earnings reports continue to roll in, investors may be taking a deeper look at some of the names that they have on their shortlist. Investors may also be taking a look at future estimates and guidance provided by companies in order to get a feel of how the stock price may be affected in the future. With the equity market still trading at super high levels, investors may be wondering how much higher some stocks in the portfolio can go. Maybe there are a few winners that look like they have peaked, and investors may have to decide whether to cash in or hold out for more gains. Maybe there are a few losers that have been underperforming and need to be cut loose.

Most importantly investors want to know where the stock is headed from here. In order to get a sense of Wall Street sentiment, we can look to equity research analyst estimates. 

3M Company (NYSE:MMM) currently has an average analyst recommendation of 2.70 according to analysts. This is the average number based on the total brokerage firms taken into consideration by Beta Systems Research. The same analysts have a future one-year price target of $205.13 on the shares.

In addition to sell-side rational, we can also take a look at some technical indicators. The stock is currently 0.39% away from its 50-day simple moving average and -2.63% away from the 200 day average.

Based on a recent trade, the shares are -22.16% away from the 52-week high and 11.11% from the 52-week low.

The RSI (Relative Strength Index), which shows price strength by comparing upward and downward close to close movements.

An RSI approaching 70 is typically deemed to be nearing overbought status and could be ripe for a pullback. Alternatively an RSI nearing 30 indicates that the stock could be getting oversold and might be considered undervalued. The RSI for 3M Company (NYSE:MMM) currently stands at 49.33.

Performance
3M Company (NYSE:MMM) has posted trailing 12 months earnings of $9.08 per share. The company has seen a change of 12.40% earnings per share this year. Analysts are predicting 8.36% for the company next year. The firm is yielding 12.00% return on assets and 41.90% return on equity.

An important idea when dealing with technical analysis is that historical stock price movements tend to repeat. Technical analysis focuses on chart patterns with the goal of analyzing market movements and defining trends. Charting has been around for many years, and even older methods are considered to be relevant due to the nature of repeating patterns. Certain trends may be easier to spot than others. Technical analysts that spend vast amounts of studying charts and patterns may be more adept at spotting specific trends. Investors may want to employ multiple methods of trend spotting in order to get a more robust spectrum with which to work.