In the latest trading session, Archer Daniels Midland (ADM) closed at $87.89, marking a +0.37% move from the previous day. This change outpaced the S&P 500's 0.78% loss on the day. At the same time, the Dow lost 0.88%, and the tech-heavy Nasdaq lost 0.26%.
Coming into today, shares of the agribusiness giant had gained 5.77% in the past month. In that same time, the Consumer Staples sector lost 1.49%, while the S&P 500 lost 3.4%.
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 $1.36 per share, which would represent year-over-year growth of 40.21%. Meanwhile, our latest consensus estimate is calling for revenue of $22.42 billion, up 10.22% from the prior-year quarter.
ADM's full-year Zacks Consensus Estimates are calling for earnings of $6.76 per share and revenue of $97.94 billion. These results would represent year-over-year changes of +30.25% and +14.89%, respectively.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.94% higher. Archer Daniels Midland currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Archer Daniels Midland currently has a Forward P/E ratio of 12.95. For comparison, its industry has an average Forward P/E of 23.98, which means Archer Daniels Midland is trading at a discount to the group.
We can also see that ADM currently has a PEG ratio of 1.86. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Agriculture - Operations stocks are, on average, holding a PEG ratio of 2.38 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 154, which puts it in the bottom 39% 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.
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Archer Daniels Midland Company (ADM) : Free Stock Analysis Report
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