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Archer Daniels Midland (ADM) Dips More Than Broader Markets: What You Should Know

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Archer Daniels Midland (ADM - Free Report) closed at $43.16 in the latest trading session, marking a -0.48% move from the prior day. This move lagged the S&P 500's daily loss of 0.02%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 0.21%.

Heading into today, shares of the agribusiness giant had lost 3.47% over the past month, outpacing the Consumer Staples sector's loss of 3.68% and lagging the S&P 500's loss of 1.4% in that time.

Wall Street will be looking for positivity from ADM as it approaches its next earnings report date. This is expected to be February 5, 2019. The company is expected to report EPS of $0.92, up 12.2% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $17.45 billion, up 8.6% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for ADM. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 0.21% higher within the past month. ADM is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, ADM is currently trading at a Forward P/E ratio of 12. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 12.

The Agriculture - Operations industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 34, which puts it in the top 14% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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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