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Archer Daniels Midland (ADM) Stock Moves -0.78%: What You Should Know

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In the latest trading session, Archer Daniels Midland (ADM - Free Report) closed at $68.61, marking a -0.78% move from the previous day. This change was narrower than the S&P 500's 1.94% loss on the day. Elsewhere, the Dow lost 1.07%, while the tech-heavy Nasdaq lost 0.39%.

Prior to today's trading, shares of the agribusiness giant had gained 7.78% over the past month. This has lagged the Consumer Staples sector's gain of 8.34% and outpaced the S&P 500's gain of 5.72% in that time.

Wall Street will be looking for positivity from Archer Daniels Midland as it approaches its next earnings report date. On that day, Archer Daniels Midland is projected to report earnings of $1.23 per share, which would represent year-over-year growth of 1.65%. Our most recent consensus estimate is calling for quarterly revenue of $20.18 billion, up 12.27% from the year-ago period.

Any recent changes to analyst estimates for Archer Daniels Midland should also be noted by investors. 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 company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 1.06% higher. Archer Daniels Midland is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Archer Daniels Midland's current valuation metrics, including its Forward P/E ratio of 14.91. This represents a discount compared to its industry's average Forward P/E of 18.25.

Also, we should mention that ADM has a PEG ratio of 1.73. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Agriculture - Operations stocks are, on average, holding a PEG ratio of 1.17 based on yesterday's closing prices.

The Agriculture - Operations industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 222, which puts it in the bottom 13% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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