Archer Daniels Midland (ADM) ended the recent trading session at $60.49, demonstrating a +1.53% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.62%. On the other hand, the Dow registered a gain of 0.99%, and the technology-centric Nasdaq increased by 0.65%.
The agribusiness giant's shares have seen an increase of 2.83% over the last month, surpassing the Consumer Staples sector's loss of 1.6% and the S&P 500's gain of 0.59%.
Analysts and investors alike will be keeping a close eye on the performance of Archer Daniels Midland in its upcoming earnings disclosure. The company is expected to report EPS of $0.84, down 26.32% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $22.14 billion, reflecting a 2.98% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.4 per share and revenue of $83.85 billion. These totals would mark changes of -28.27% and 0%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Archer Daniels Midland. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 3.43% lower within the past month. Archer Daniels Midland is currently a Zacks Rank #5 (Strong Sell).
Digging into valuation, Archer Daniels Midland currently has a Forward P/E ratio of 14.12. This valuation marks no noticeable deviation compared to its industry average Forward P/E of 14.12.
Meanwhile, ADM's PEG ratio is currently 4.08. 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 Agriculture - Operations industry currently had an average PEG ratio of 1.56 as of yesterday's close.
The Agriculture - Operations industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 217, positioning it in the bottom 12% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Archer Daniels Midland Company (ADM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
