Archer Daniels Midland (ADM) Stock Falls Amid Market Uptick: What Investors Need to Know
In the latest market close, Archer Daniels Midland (ADM) reached $55.69, with a -1.89% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.07%. Meanwhile, the Dow experienced a rise of 0.35%, and the technology-dominated Nasdaq saw an increase of 1.74%.
Shares of the agribusiness giant have depreciated by 20.89% over the course of the past month, underperforming the Consumer Staples sector's gain of 2.2% and the S&P 500's gain of 2.93%.
The investment community will be closely monitoring the performance of Archer Daniels Midland in its forthcoming earnings report. The company's upcoming EPS is projected at $1.45, signifying a 24.87% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $23.65 billion, indicating a 9.85% downward movement from the same quarter 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 8.21% lower. Archer Daniels Midland is currently a Zacks Rank #4 (Sell).
With respect to valuation, Archer Daniels Midland is currently being traded at a Forward P/E ratio of 9.67. This expresses a discount compared to the average Forward P/E of 18.09 of its industry.
The Agriculture - Operations industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 208, which puts it in the bottom 18% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Archer Daniels Midland Company (ADM) : Free Stock Analysis Report
