Archer Daniels Midland (ADM) closed at $70.65 in the latest trading session, marking a -1.09% move from the prior day. This change lagged the S&P 500's daily loss of 0.61%. Meanwhile, the Dow lost 0.41%, and the Nasdaq, a tech-heavy index, added 10.45%.
Coming into today, shares of the agribusiness giant had lost 5.42% in the past month. In that same time, the Consumer Staples sector lost 6.6%, while the S&P 500 gained 1.05%.
Investors will be hoping for strength from Archer Daniels Midland as it approaches its next earnings release. On that day, Archer Daniels Midland is projected to report earnings of $1.54 per share, which would represent a year-over-year decline of 28.37%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $24.94 billion, down 8.58% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.84 per share and revenue of $97.8 billion. These totals would mark changes of -12.87% and -3.98%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Archer Daniels Midland. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.87% higher. Archer Daniels Midland is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Archer Daniels Midland is holding a Forward P/E ratio of 10.44. This represents a discount compared to its industry's average Forward P/E of 18.41.
Meanwhile, ADM's PEG ratio is currently 1.63. 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. Agriculture - Operations stocks are, on average, holding a PEG ratio of 1.26 based on yesterday's closing prices.
The Agriculture - Operations industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 213, which puts it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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