In the latest trading session, Archer Daniels Midland (ADM) closed at $61.64, marking a +1.31% move from the previous day. The stock's change was less than the S&P 500's daily gain of 1.56%. On the other hand, the Dow registered a gain of 1.29%, and the technology-centric Nasdaq increased by 2.21%.
Shares of the agribusiness giant witnessed a loss of 1.19% over the previous month, beating the performance of the Consumer Staples sector with its loss of 2.88%, and underperforming the S&P 500's gain of 0.41%.
Investors will be eagerly watching for the performance of Archer Daniels Midland in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.87, indicating a 20.18% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $19.8 billion, down 0.69% from the year-ago period.
ADM's full-year Zacks Consensus Estimates are calling for earnings of $3.99 per share and revenue of $83.58 billion. These results would represent year-over-year changes of -15.82% and -2.28%, respectively.
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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 #3 (Hold).
In terms of valuation, Archer Daniels Midland is presently being traded at a Forward P/E ratio of 15.23. For comparison, its industry has an average Forward P/E of 15.23, which means Archer Daniels Midland is trading at no noticeable deviation to the group.
It's also important to note that ADM currently trades at a PEG ratio of 3.24. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Agriculture - Operations industry stood at 1.71 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 151, positioning it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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