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Archer Daniels Midland (ADM) Outpaces Stock Market Gains: What You Should Know
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Archer Daniels Midland (ADM - Free Report) closed at $79.47 in the latest trading session, marking a +0.61% move from the prior day. This change outpaced the S&P 500's 0.57% gain on the day. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.33%.
Heading into today, shares of the agribusiness giant had lost 0.32% over the past month, lagging the Consumer Staples sector's gain of 2% and the S&P 500's gain of 1.72% in that time.
Archer Daniels Midland will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.71, down 10% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $23.69 billion, up 0.18% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.74 per share and revenue of $99.88 billion, which would represent changes of -14.14% and -1.94%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Archer Daniels Midland. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Archer Daniels Midland is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Archer Daniels Midland's current valuation metrics, including its Forward P/E ratio of 11.72. For comparison, its industry has an average Forward P/E of 17.67, which means Archer Daniels Midland is trading at a discount to the group.
Meanwhile, ADM's PEG ratio is currently 1.83. 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. The Agriculture - Operations industry currently had an average PEG ratio of 1.45 as of yesterday's close.
The Agriculture - Operations industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 217, which puts it in the bottom 14% 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.
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 (ADM) Outpaces Stock Market Gains: What You Should Know
Archer Daniels Midland (ADM - Free Report) closed at $79.47 in the latest trading session, marking a +0.61% move from the prior day. This change outpaced the S&P 500's 0.57% gain on the day. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.33%.
Heading into today, shares of the agribusiness giant had lost 0.32% over the past month, lagging the Consumer Staples sector's gain of 2% and the S&P 500's gain of 1.72% in that time.
Archer Daniels Midland will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.71, down 10% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $23.69 billion, up 0.18% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.74 per share and revenue of $99.88 billion, which would represent changes of -14.14% and -1.94%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Archer Daniels Midland. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Archer Daniels Midland is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Archer Daniels Midland's current valuation metrics, including its Forward P/E ratio of 11.72. For comparison, its industry has an average Forward P/E of 17.67, which means Archer Daniels Midland is trading at a discount to the group.
Meanwhile, ADM's PEG ratio is currently 1.83. 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. The Agriculture - Operations industry currently had an average PEG ratio of 1.45 as of yesterday's close.
The Agriculture - Operations industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 217, which puts it in the bottom 14% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.