In the latest close session, Archer Daniels Midland (ADM) was down 1.06% at $55.31. The stock's performance was behind the S&P 500's daily gain of 0.83%. Elsewhere, the Dow saw an upswing of 0.77%, while the tech-heavy Nasdaq appreciated by 1.02%.
Heading into today, shares of the agribusiness giant had gained 18.33% over the past month, outpacing the Consumer Staples sector's loss of 0.61% and the S&P 500's gain of 4.99%.
The investment community will be paying close attention to the earnings performance of Archer Daniels Midland in its upcoming release. The company is predicted to post an EPS of $0.95, indicating a 7.77% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $22.1 billion, reflecting a 0.68% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $4.05 per share and a revenue of $85.03 billion, demonstrating changes of -14.56% and -0.58%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Archer Daniels Midland. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Archer Daniels Midland is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Archer Daniels Midland is currently trading at a Forward P/E ratio of 13.8. This expresses a discount compared to the average Forward P/E of 16.05 of its industry.
Meanwhile, ADM's PEG ratio is currently 3.11. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Agriculture - Operations industry had an average PEG ratio of 1.55.
The Agriculture - Operations industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 229, which puts it in the bottom 8% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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