Archer Daniels Midland (ADM) Gains As Market Dips: What You Should Know
Archer Daniels Midland (ADM) closed at $90.90 in the latest trading session, marking a +0.52% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.26%. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, lost 0.28%.
Coming into today, shares of the agribusiness giant had gained 7.69% in the past month. In that same time, the Consumer Staples sector gained 1.52%, while the S&P 500 gained 6.07%.
Wall Street will be looking for positivity from Archer Daniels Midland as it approaches its next earnings report date. In that report, analysts expect Archer Daniels Midland to post earnings of $1.34 per share. This would mark a year-over-year decline of 3.6%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.45 billion, up 8.26% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.16 per share and revenue of $88.26 billion. These totals would mark changes of -0.58% and +3.53%, respectively, from last year.
Any recent changes to analyst estimates for Archer Daniels Midland should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.28% higher. Archer Daniels Midland is currently a Zacks Rank #3 (Hold).
In terms of valuation, Archer Daniels Midland is currently trading at a Forward P/E ratio of 17.52. Its industry sports an average Forward P/E of 25.17, so we one might conclude that Archer Daniels Midland is trading at a discount comparatively.
We can also see that ADM currently has a PEG ratio of 9.9. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ADM's industry had an average PEG ratio of 2.38 as of yesterday's close.
The Agriculture - Operations industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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