Archer Daniels Midland (ADM) closed at $54.76 in the latest trading session, marking a -1.07% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.02%. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, added 0.33%.
Shares of the agribusiness giant have appreciated by 6.48% over the course of the past month, outperforming the Consumer Staples sector's gain of 1.1%, and the S&P 500's gain of 4.93%.
Market participants will be closely following the financial results of Archer Daniels Midland in its upcoming release. The company plans to announce its earnings on August 5, 2025. In that report, analysts expect Archer Daniels Midland to post earnings of $0.88 per share. This would mark a year-over-year decline of 14.56%. Meanwhile, the latest consensus estimate predicts the revenue to be $21.11 billion, indicating a 5.13% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.03 per share and revenue of $84.15 billion, which would represent changes of -14.98% and -1.61%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Archer Daniels Midland. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.44% lower. As of now, Archer Daniels Midland holds a Zacks Rank of #3 (Hold).
In terms of valuation, Archer Daniels Midland is presently being traded at a Forward P/E ratio of 13.72. For comparison, its industry has an average Forward P/E of 16.31, which means Archer Daniels Midland is trading at a discount to the group.
Investors should also note that ADM has a PEG ratio of 3.09 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Agriculture - Operations industry stood at 1.72 at the close of the market yesterday.
The Agriculture - Operations industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 208, positioning it in the bottom 16% 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.
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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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