U.S. markets open in 1 hour 22 minutes
  • S&P Futures

    4,136.00
    +11.50 (+0.28%)
     
  • Dow Futures

    32,808.00
    +71.00 (+0.22%)
     
  • Nasdaq Futures

    13,081.00
    +49.50 (+0.38%)
     
  • Russell 2000 Futures

    1,918.00
    +3.40 (+0.18%)
     
  • Crude Oil

    88.95
    -1.55 (-1.71%)
     
  • Gold

    1,808.20
    -4.10 (-0.23%)
     
  • Silver

    20.45
    -0.03 (-0.16%)
     
  • EUR/USD

    1.0256
    +0.0039 (+0.38%)
     
  • 10-Yr Bond

    2.7970
    0.0000 (0.00%)
     
  • Vix

    22.22
    +0.93 (+4.37%)
     
  • GBP/USD

    1.2118
    +0.0041 (+0.34%)
     
  • USD/JPY

    134.7540
    -0.3620 (-0.27%)
     
  • BTC-USD

    23,122.34
    -166.66 (-0.72%)
     
  • CMC Crypto 200

    538.02
    -19.33 (-3.47%)
     
  • FTSE 100

    7,493.26
    +5.11 (+0.07%)
     
  • Nikkei 225

    27,819.33
    -180.63 (-0.65%)
     

Archer Daniels Midland (ADM) Outpaces Stock Market Gains: What You Should Know

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Archer Daniels Midland (ADM) closed at $74.57 in the latest trading session, marking a +1% move from the prior day. This change outpaced the S&P 500's 0.59% gain on the day. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq lost 0.02%.

Prior to today's trading, shares of the agribusiness giant had lost 7.02% over the past month. This has lagged the Consumer Staples sector's gain of 5.45% and the S&P 500's gain of 7.25% in that time.

Investors will be hoping for strength from Archer Daniels Midland as it approaches its next earnings release, which is expected to be July 26, 2022. On that day, Archer Daniels Midland is projected to report earnings of $1.74 per share, which would represent year-over-year growth of 30.83%. Meanwhile, our latest consensus estimate is calling for revenue of $25.27 billion, up 10.22% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.31 per share and revenue of $95.83 billion. These totals would mark changes of +21.58% and +12.41%, 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 0.32% lower. Archer Daniels Midland is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Archer Daniels Midland currently has a Forward P/E ratio of 11.71. This valuation marks a discount compared to its industry's average Forward P/E of 21.09.

Also, we should mention that ADM has a PEG ratio of 2.01. 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 2.22 based on yesterday's closing prices.

The Agriculture - Operations industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 75, putting it in the top 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Archer Daniels Midland Company (ADM) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research