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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 $76.36 in the latest trading session, marking a +0.38% move from the prior day. This move outpaced the S&P 500's daily gain of 0.02%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq gained 0.22%.
Heading into today, shares of the agribusiness giant had lost 6.79% over the past month, lagging the Consumer Staples sector's loss of 4.83% and the S&P 500's loss of 2.86% 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 $1.55 per share, which would represent a year-over-year decline of 16.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.67 billion, down 4.12% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.18 per share and revenue of $98.03 billion, which would represent changes of -8.54% and -3.74%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Archer Daniels Midland. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Archer Daniels Midland is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Archer Daniels Midland has a Forward P/E ratio of 10.6 right now. For comparison, its industry has an average Forward P/E of 15.72, which means Archer Daniels Midland is trading at a discount to the group.
Investors should also note that ADM has a PEG ratio of 1.66 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Agriculture - Operations was holding an average PEG ratio of 1.17 at yesterday's closing price.
The Agriculture - Operations industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow ADM in the coming trading sessions, be sure to utilize Zacks.com.
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Archer Daniels Midland (ADM) Outpaces Stock Market Gains: What You Should Know
Archer Daniels Midland (ADM - Free Report) closed at $76.36 in the latest trading session, marking a +0.38% move from the prior day. This move outpaced the S&P 500's daily gain of 0.02%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq gained 0.22%.
Heading into today, shares of the agribusiness giant had lost 6.79% over the past month, lagging the Consumer Staples sector's loss of 4.83% and the S&P 500's loss of 2.86% 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 $1.55 per share, which would represent a year-over-year decline of 16.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.67 billion, down 4.12% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.18 per share and revenue of $98.03 billion, which would represent changes of -8.54% and -3.74%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Archer Daniels Midland. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Archer Daniels Midland is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Archer Daniels Midland has a Forward P/E ratio of 10.6 right now. For comparison, its industry has an average Forward P/E of 15.72, which means Archer Daniels Midland is trading at a discount to the group.
Investors should also note that ADM has a PEG ratio of 1.66 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Agriculture - Operations was holding an average PEG ratio of 1.17 at yesterday's closing price.
The Agriculture - Operations industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow ADM in the coming trading sessions, be sure to utilize Zacks.com.