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Archer Daniels Midland (ADM) Stock Falls Amid Market Uptick: What Investors Need to Know

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The most recent trading session ended with Archer Daniels Midland (ADM - Free Report) standing at $56.32, reflecting a -1.61% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 0.16%. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq added 0.78%.

Prior to today's trading, shares of the agribusiness giant had lost 4.18% over the past month. This has lagged the Consumer Staples sector's loss of 3.18% and the S&P 500's gain of 1.67% in that time.

The investment community will be closely monitoring the performance of Archer Daniels Midland in its forthcoming earnings report. The company is scheduled to release its earnings on November 5, 2024. The company is predicted to post an EPS of $1.32, indicating a 19.02% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $20.67 billion, reflecting a 4.71% fall from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.19 per share and a revenue of $87.46 billion, signifying shifts of -25.64% and -6.9%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Archer Daniels Midland. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.72% lower. Archer Daniels Midland is holding a Zacks Rank of #4 (Sell) right now.

Looking at its valuation, Archer Daniels Midland is holding a Forward P/E ratio of 11.04. Its industry sports an average Forward P/E of 22.96, so one might conclude that Archer Daniels Midland is trading at a discount comparatively.

The Agriculture - Operations industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 147, placing it within the bottom 42% of over 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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