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Archer Daniels Midland (ADM) Laps the Stock Market: Here's Why
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Archer Daniels Midland (ADM - Free Report) closed the latest trading day at $64.23, indicating a +1.74% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 1.02%. At the same time, the Dow added 1.09%, and the tech-heavy Nasdaq gained 1.18%.
Prior to today's trading, shares of the agribusiness giant had gained 2.67% over the past month. This has outpaced the Consumer Staples sector's loss of 2.18% and lagged the S&P 500's gain of 4.44% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Archer Daniels Midland in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.30, marking a 31.22% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $23.24 billion, showing a 7.75% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $5.56 per share and a revenue of $89.19 billion, demonstrating changes of -20.34% and -5.05%, respectively, from the preceding year.
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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.86% lower. Archer Daniels Midland is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Archer Daniels Midland is currently exchanging hands at a Forward P/E ratio of 11.35. This signifies a discount in comparison to the average Forward P/E of 15.76 for its industry.
The Agriculture - Operations industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 29% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Archer Daniels Midland (ADM) Laps the Stock Market: Here's Why
Archer Daniels Midland (ADM - Free Report) closed the latest trading day at $64.23, indicating a +1.74% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 1.02%. At the same time, the Dow added 1.09%, and the tech-heavy Nasdaq gained 1.18%.
Prior to today's trading, shares of the agribusiness giant had gained 2.67% over the past month. This has outpaced the Consumer Staples sector's loss of 2.18% and lagged the S&P 500's gain of 4.44% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Archer Daniels Midland in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.30, marking a 31.22% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $23.24 billion, showing a 7.75% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $5.56 per share and a revenue of $89.19 billion, demonstrating changes of -20.34% and -5.05%, respectively, from the preceding year.
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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.86% lower. Archer Daniels Midland is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Archer Daniels Midland is currently exchanging hands at a Forward P/E ratio of 11.35. This signifies a discount in comparison to the average Forward P/E of 15.76 for its industry.
The Agriculture - Operations industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 29% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.