Archer Daniels Midland (ADM) Surpasses Market Returns: Some Facts Worth Knowing
In the latest trading session, Archer Daniels Midland (ADM) closed at $53.05, marking a +0.66% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.57% for the day. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, added 1.25%.
Heading into today, shares of the agribusiness giant had lost 24.14% over the past month, lagging the Consumer Staples sector's gain of 0.93% and the S&P 500's gain of 5.07% in that time.
The upcoming earnings release of Archer Daniels Midland will be of great interest to investors. It is anticipated that the company will report an EPS of $1.45, marking a 24.87% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $23.65 billion, reflecting a 9.83% fall from the equivalent quarter last year.
Investors should also pay attention to any latest changes in analyst estimates for Archer Daniels Midland. These revisions help to show the ever-changing nature of near-term business trends. 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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 9.71% downward. Archer Daniels Midland presently features a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Archer Daniels Midland is presently being traded at a Forward P/E ratio of 9.13. This represents a discount compared to its industry's average Forward P/E of 18.1.
The Agriculture - Operations industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 230, placing it within the bottom 9% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Archer Daniels Midland Company (ADM) : Free Stock Analysis Report
