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The Andersons (ANDE) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, The Andersons (ANDE - Free Report) closed at $37.90, marking a -0.37% move from the previous day. This change lagged the S&P 500's daily gain of 0.94%. Meanwhile, the Dow gained 0.63%, and the Nasdaq, a tech-heavy index, lost 0.55%.

Heading into today, shares of the agriculture company had lost 3.53% over the past month, lagging the Basic Materials sector's loss of 2.45% and outpacing the S&P 500's loss of 4.63% in that time.

The Andersons will be looking to display strength as it nears its next earnings release, which is expected to be February 15, 2022. On that day, The Andersons is projected to report earnings of $0.58 per share, which would represent a year-over-year decline of 1.69%. Our most recent consensus estimate is calling for quarterly revenue of $2.63 billion, up 3.27% from the year-ago period.

It is also important to note the recent changes to analyst estimates for The Andersons. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. The Andersons is currently a Zacks Rank #3 (Hold).

Investors should also note The Andersons's current valuation metrics, including its Forward P/E ratio of 16.61. Its industry sports an average Forward P/E of 20.74, so we one might conclude that The Andersons is trading at a discount comparatively.

The Agriculture - Products industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 213, which puts it in the bottom 17% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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


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