In the latest close session, Archer Daniels Midland (ADM) was up +1.23% at $61.94. The stock outperformed the S&P 500, which registered a daily gain of 0.65%. On the other hand, the Dow registered a gain of 0.48%, and the technology-centric Nasdaq increased by 0.82%.
The stock of agribusiness giant has risen by 2.12% in the past month, leading the Consumer Staples sector's gain of 0.07% and the S&P 500's gain of 1.15%.
Investors will be eagerly watching for the performance of Archer Daniels Midland in its upcoming earnings disclosure. The company is expected to report EPS of $0.83, down 27.19% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.14 billion, up 2.98% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $3.39 per share and a revenue of $83.85 billion, demonstrating changes of -28.48% and 0%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Archer Daniels Midland. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.96% lower. Right now, Archer Daniels Midland possesses 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 14.73. This valuation marks a premium compared to its industry average Forward P/E of 14.33.
Investors should also note that ADM has a PEG ratio of 4.26 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Agriculture - Operations industry currently had an average PEG ratio of 1.6 as of yesterday's close.
The Agriculture - Operations industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 212, placing it within the bottom 14% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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
