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Archer Daniels Midland (ADM) Stock Moves -0.83%: What You Should Know

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Archer Daniels Midland (ADM - Free Report) closed the latest trading day at $47.57, indicating a -0.83% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily loss of 4.84%. Elsewhere, the Dow lost 3.98%, while the tech-heavy Nasdaq lost 5.97%.

The agribusiness giant's stock has climbed by 4.74% in the past month, falling short of the Consumer Staples sector's gain of 5.4% and outpacing the S&P 500's loss of 4.7%.

The upcoming earnings release of Archer Daniels Midland will be of great interest to investors. The company is predicted to post an EPS of $0.71, indicating a 51.37% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $20.74 billion, indicating a 5.06% downward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.24 per share and revenue of $88.43 billion. These totals would mark changes of -10.55% and +3.39%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Archer Daniels Midland. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Archer Daniels Midland is carrying a Zacks Rank of #4 (Sell).

In terms of valuation, Archer Daniels Midland is presently being traded at a Forward P/E ratio of 11.31. This expresses a discount compared to the average Forward P/E of 12.63 of its industry.

It's also important to note that ADM currently trades at a PEG ratio of 1.56. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Agriculture - Operations stocks are, on average, holding a PEG ratio of 1.62 based on yesterday's closing prices.

The Agriculture - Operations industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 175, finds itself in the bottom 30% echelons 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.

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


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