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Should Value Investors Buy Archer Daniels Midland (ADM) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Archer Daniels Midland (ADM - Free Report) is a stock many investors are watching right now. ADM is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.23. This compares to its industry's average Forward P/E of 14.44. ADM's Forward P/E has been as high as 18.93 and as low as 11.29, with a median of 14.20, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ADM has a P/S ratio of 0.44. This compares to its industry's average P/S of 1.05.
Finally, we should also recognize that ADM has a P/CF ratio of 8.40. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.83. ADM's P/CF has been as high as 14.28 and as low as 8.32, with a median of 10.49, all within the past year.
These are only a few of the key metrics included in Archer Daniels Midland's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ADM looks like an impressive value stock at the moment.
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Should Value Investors Buy Archer Daniels Midland (ADM) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Archer Daniels Midland (ADM - Free Report) is a stock many investors are watching right now. ADM is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.23. This compares to its industry's average Forward P/E of 14.44. ADM's Forward P/E has been as high as 18.93 and as low as 11.29, with a median of 14.20, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ADM has a P/S ratio of 0.44. This compares to its industry's average P/S of 1.05.
Finally, we should also recognize that ADM has a P/CF ratio of 8.40. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.83. ADM's P/CF has been as high as 14.28 and as low as 8.32, with a median of 10.49, all within the past year.
These are only a few of the key metrics included in Archer Daniels Midland's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ADM looks like an impressive value stock at the moment.