Archer Daniels Midland (ADM) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Archer Daniels Midland (ADM) closed at $76.61, marking a +1.97% move from the previous day. This change outpaced the S&P 500's 0.56% gain on the day. Meanwhile, the Dow gained 0.41%, and the Nasdaq, a tech-heavy index, added 1.35%.
Heading into today, shares of the agribusiness giant had lost 8.43% over the past month, lagging the Consumer Staples sector's loss of 1.86% and the S&P 500's loss of 1.48% in that time.
Wall Street will be looking for positivity from Archer Daniels Midland as it approaches its next earnings report date. 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%. Meanwhile, our latest consensus estimate is calling for revenue of $23.69 billion, up 0.18% from the prior-year quarter.
ADM's full-year Zacks Consensus Estimates are calling for earnings of $6.74 per share and revenue of $99.88 billion. These results would represent year-over-year changes of -14.14% and -1.94%, respectively.
Investors might also notice recent changes to analyst estimates for Archer Daniels Midland. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant. Archer Daniels Midland is currently a Zacks Rank #1 (Strong Buy).
Investors should also note Archer Daniels Midland's current valuation metrics, including its Forward P/E ratio of 11.15. Its industry sports an average Forward P/E of 16.32, so we one might conclude that Archer Daniels Midland is trading at a discount comparatively.
Investors should also note that ADM has a PEG ratio of 1.74 right now. 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. The Agriculture - Operations industry currently had an average PEG ratio of 1.37 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 222, which puts it in the bottom 12% 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
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