In the latest close session, Archer Daniels Midland (ADM) was up +2.94% at $59.92. The stock exceeded the S&P 500, which registered a gain of 0.21% for the day. Meanwhile, the Dow experienced a rise of 1.35%, and the technology-dominated Nasdaq saw a decrease of 0.26%.
The agribusiness giant's shares have seen an increase of 0.8% over the last month, not keeping up with the Consumer Staples sector's gain of 1% and the S&P 500's gain of 0.89%.
Market participants will be closely following the financial results of Archer Daniels Midland in its upcoming release. The company's upcoming EPS is projected at $0.85, signifying a 25.44% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $22.14 billion, showing a 2.98% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.41 per share and a revenue of $83.85 billion, representing changes of -28.06% and -1.96%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Archer Daniels Midland. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.94% higher. Archer Daniels Midland is currently sporting a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Archer Daniels Midland currently has a Forward P/E ratio of 17.09. This signifies no noticeable deviation in comparison to the average Forward P/E of 17.09 for its industry.
We can also see that ADM currently has a PEG ratio of 4.94. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Agriculture - Operations industry had an average PEG ratio of 2.14.
The Agriculture - Operations industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 202, this industry ranks in the bottom 19% of all industries, numbering over 250.
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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