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Archer Daniels Midland (ADM) Ascends But Remains Behind Market: Some Facts to Note

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The most recent trading session ended with Archer Daniels Midland (ADM - Free Report) standing at $59.50, reflecting a +0.05% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 1.16%. Meanwhile, the Dow experienced a rise of 1.2%, and the technology-dominated Nasdaq saw an increase of 1.16%.

The the stock of agribusiness giant has risen by 1.76% in the past month, lagging the Consumer Staples sector's gain of 4.87% and the S&P 500's gain of 3.48%.

Market participants will be closely following the financial results of Archer Daniels Midland in its upcoming release. The company is predicted to post an EPS of $1.38, indicating a 15.34% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $20.94 billion, down 3.49% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.33 per share and a revenue of $88.06 billion, signifying shifts of -23.64% and -6.25%, respectively, from the last 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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.47% lower. Currently, Archer Daniels Midland is carrying a Zacks Rank of #4 (Sell).

Investors should also note Archer Daniels Midland's current valuation metrics, including its Forward P/E ratio of 11.16. For comparison, its industry has an average Forward P/E of 16.79, which means Archer Daniels Midland is trading at a discount to the group.

The Agriculture - Operations industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 103, positioning it in the top 41% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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