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Archer Daniels Midland (ADM) Gains As Market Dips: What You Should Know

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In the latest trading session, Archer Daniels Midland (ADM - Free Report) closed at $64.64, marking a +1.88% move from the previous day. This change outpaced the S&P 500's 0.91% loss on the day. At the same time, the Dow lost 0.89%, and the tech-heavy Nasdaq gained 0.4%.

Prior to today's trading, shares of the agribusiness giant had lost 3.76% over the past month. This has lagged the Consumer Staples sector's loss of 0.35% and the S&P 500's gain of 1.55% in that time.

Archer Daniels Midland will be looking to display strength as it nears its next earnings release. On that day, Archer Daniels Midland is projected to report earnings of $1.19 per share, which would represent a year-over-year decline of 1.65%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.88 billion, up 10.57% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.87 per share and revenue of $82.52 billion, which would represent changes of +35.65% and +28.22%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Archer Daniels Midland. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Archer Daniels Midland is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Archer Daniels Midland currently has a Forward P/E ratio of 13.02. This valuation marks a discount compared to its industry's average Forward P/E of 22.57.

Investors should also note that ADM has a PEG ratio of 1.51 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Agriculture - Operations industry currently had an average PEG ratio of 1.51 as of yesterday's close.

The Agriculture - Operations industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 43% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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