Archer Daniels Midland (ADM) closed the most recent trading day at $57.49, moving -1.17% from the previous trading session. This change lagged the S&P 500's daily loss of 0.74%. Meanwhile, the Dow lost 0.63%, and the Nasdaq, a tech-heavy index, lost 0.76%.
Prior to today's trading, shares of the agribusiness giant had lost 3.55% lagged the Consumer Staples sector's loss of 1% and the S&P 500's gain of 0.79%.
Investors will be eagerly watching for the performance of Archer Daniels Midland in its upcoming earnings disclosure. On that day, Archer Daniels Midland is projected to report earnings of $0.84 per share, which would represent a year-over-year decline of 26.32%. 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 $3.4 per share and a revenue of $83.85 billion, representing changes of -28.27% and -1.96%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Archer Daniels Midland. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.29% downward. Archer Daniels Midland is currently sporting a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, Archer Daniels Midland is currently exchanging hands at a Forward P/E ratio of 17.13. Its industry sports an average Forward P/E of 16.34, so one might conclude that Archer Daniels Midland is trading at a premium comparatively.
Also, we should mention that ADM has a PEG ratio of 4.95. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Agriculture - Operations industry held an average PEG ratio of 2.18.
The Agriculture - Operations industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 220, finds itself in the bottom 11% echelons 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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