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Archer Daniels Midland (ADM) Gains As Market Dips: What You Should Know
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Archer Daniels Midland (ADM - Free Report) closed at $89.30 in the latest trading session, marking a +1.66% move from the prior day. This change outpaced the S&P 500's 0.63% loss on the day. Meanwhile, the Dow lost 0.19%, and the Nasdaq, a tech-heavy index, lost 0.34%.
Prior to today's trading, shares of the agribusiness giant had gained 12.63% over the past month. This has outpaced the Consumer Staples sector's gain of 0.35% and the S&P 500's gain of 6.02% in that time.
Investors will be hoping for strength from Archer Daniels Midland as it approaches its next earnings release. The company is expected to report EPS of $1.34, down 3.6% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $20.45 billion, up 8.26% from the prior-year quarter.
ADM's full-year Zacks Consensus Estimates are calling for earnings of $5.15 per share and revenue of $88.26 billion. These results would represent year-over-year changes of -0.77% and +3.53%, respectively.
It is also important to note the recent changes to analyst estimates for Archer Daniels Midland. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Archer Daniels Midland currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Archer Daniels Midland is holding a Forward P/E ratio of 17.07. For comparison, its industry has an average Forward P/E of 26.57, which means Archer Daniels Midland is trading at a discount to the group.
Also, we should mention that ADM has a PEG ratio of 9.64. 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 2.52 at yesterday's closing price.
The Agriculture - Operations industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 180, putting it in the bottom 30% of all 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.
To follow ADM in the coming trading sessions, be sure to utilize Zacks.com.
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Archer Daniels Midland (ADM) Gains As Market Dips: What You Should Know
Archer Daniels Midland (ADM - Free Report) closed at $89.30 in the latest trading session, marking a +1.66% move from the prior day. This change outpaced the S&P 500's 0.63% loss on the day. Meanwhile, the Dow lost 0.19%, and the Nasdaq, a tech-heavy index, lost 0.34%.
Prior to today's trading, shares of the agribusiness giant had gained 12.63% over the past month. This has outpaced the Consumer Staples sector's gain of 0.35% and the S&P 500's gain of 6.02% in that time.
Investors will be hoping for strength from Archer Daniels Midland as it approaches its next earnings release. The company is expected to report EPS of $1.34, down 3.6% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $20.45 billion, up 8.26% from the prior-year quarter.
ADM's full-year Zacks Consensus Estimates are calling for earnings of $5.15 per share and revenue of $88.26 billion. These results would represent year-over-year changes of -0.77% and +3.53%, respectively.
It is also important to note the recent changes to analyst estimates for Archer Daniels Midland. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Archer Daniels Midland currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Archer Daniels Midland is holding a Forward P/E ratio of 17.07. For comparison, its industry has an average Forward P/E of 26.57, which means Archer Daniels Midland is trading at a discount to the group.
Also, we should mention that ADM has a PEG ratio of 9.64. 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 2.52 at yesterday's closing price.
The Agriculture - Operations industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 180, putting it in the bottom 30% of all 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.
To follow ADM in the coming trading sessions, be sure to utilize Zacks.com.