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Archer Daniels Midland (ADM) Gains But Lags Market: What You Should Know
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Archer Daniels Midland (ADM - Free Report) closed at $64.16 in the latest trading session, marking a +1.66% move from the prior day. This change lagged the S&P 500's 2.07% gain on the day. At the same time, the Dow added 1.4%, and the tech-heavy Nasdaq gained 0.49%.
Coming into today, shares of the agribusiness giant had lost 1.08% in the past month. In that same time, the Consumer Staples sector lost 1.75%, while the S&P 500 lost 2.08%.
Wall Street will be looking for positivity from Archer Daniels Midland as it approaches its next earnings report date. In that report, analysts expect Archer Daniels Midland to post earnings of $1.19 per share. This would mark a year-over-year decline of 1.65%. Our most recent consensus estimate is calling for quarterly revenue of $19.88 billion, up 10.57% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.87 per share and revenue of $82.52 billion. These totals would mark changes of +35.65% and +28.22%, respectively, from last 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. Archer Daniels Midland is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Archer Daniels Midland has a Forward P/E ratio of 12.95 right now. This valuation marks a discount compared to its industry's average Forward P/E of 22.17.
Also, we should mention that ADM has a PEG ratio of 1.5. 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 1.5 at yesterday's closing price.
The Agriculture - Operations industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% 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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Archer Daniels Midland (ADM) Gains But Lags Market: What You Should Know
Archer Daniels Midland (ADM - Free Report) closed at $64.16 in the latest trading session, marking a +1.66% move from the prior day. This change lagged the S&P 500's 2.07% gain on the day. At the same time, the Dow added 1.4%, and the tech-heavy Nasdaq gained 0.49%.
Coming into today, shares of the agribusiness giant had lost 1.08% in the past month. In that same time, the Consumer Staples sector lost 1.75%, while the S&P 500 lost 2.08%.
Wall Street will be looking for positivity from Archer Daniels Midland as it approaches its next earnings report date. In that report, analysts expect Archer Daniels Midland to post earnings of $1.19 per share. This would mark a year-over-year decline of 1.65%. Our most recent consensus estimate is calling for quarterly revenue of $19.88 billion, up 10.57% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.87 per share and revenue of $82.52 billion. These totals would mark changes of +35.65% and +28.22%, respectively, from last 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. Archer Daniels Midland is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Archer Daniels Midland has a Forward P/E ratio of 12.95 right now. This valuation marks a discount compared to its industry's average Forward P/E of 22.17.
Also, we should mention that ADM has a PEG ratio of 1.5. 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 1.5 at yesterday's closing price.
The Agriculture - Operations industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% 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.