Archer Daniels Midland (ADM) Dips More Than Broader Markets: What You Should Know
Archer Daniels Midland (ADM) closed at $81.95 in the latest trading session, marking a -0.73% move from the prior day. This change lagged the S&P 500's 0.01% loss on the day. At the same time, the Dow lost 0.23%, and the tech-heavy Nasdaq gained 0.97%.
Heading into today, shares of the agribusiness giant had gained 6.26% over the past month, outpacing the Consumer Staples sector's gain of 6.25% and the S&P 500's gain of 6.23% in that time.
Wall Street will be looking for positivity from Archer Daniels Midland as it approaches its next earnings report date. This is expected to be April 25, 2023. On that day, Archer Daniels Midland is projected to report earnings of $1.71 per share, which would represent a year-over-year decline of 10%. Our most recent consensus estimate is calling for quarterly revenue of $23.48 billion, down 0.72% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.72 per share and revenue of $98.49 billion. These totals would mark changes of -14.39% and -3.3%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Archer Daniels Midland. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.35% lower within the past month. Archer Daniels Midland is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Archer Daniels Midland is holding a Forward P/E ratio of 12.29. This represents a discount compared to its industry's average Forward P/E of 18.74.
We can also see that ADM currently has a PEG ratio of 1.92. 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. ADM's industry had an average PEG ratio of 1.48 as of yesterday's close.
The Agriculture - Operations industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 207, which puts it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Archer Daniels Midland Company (ADM) : Free Stock Analysis Report
