In the latest trading session, Archer Daniels Midland (ADM) closed at $51.98, marking a -2.24% move from the previous day. This move lagged the S&P 500's daily gain of 0.52%. Elsewhere, the Dow gained 1%, while the tech-heavy Nasdaq added 0.52%.
The stock of agribusiness giant has risen by 9.92% in the past month, leading the Consumer Staples sector's loss of 1.61% and the S&P 500's gain of 5.95%.
Analysts and investors alike will be keeping a close eye on the performance of Archer Daniels Midland in its upcoming earnings disclosure. In that report, analysts expect Archer Daniels Midland to post earnings of $0.95 per share. This would mark a year-over-year decline of 7.77%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.1 billion, down 0.68% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.05 per share and a revenue of $85.03 billion, signifying shifts of -14.56% and -0.58%, respectively, from the last year.
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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.34% fall in the Zacks Consensus EPS estimate. Right now, Archer Daniels Midland possesses a Zacks Rank of #4 (Sell).
Investors should also note Archer Daniels Midland's current valuation metrics, including its Forward P/E ratio of 13.12. This indicates a discount in contrast to its industry's Forward P/E of 14.33.
It is also worth noting that ADM currently has a PEG ratio of 2.96. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Agriculture - Operations was holding an average PEG ratio of 1.66 at yesterday's closing price.
The Agriculture - Operations industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 221, this industry ranks in the bottom 11% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
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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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