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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 $95.55 in the latest trading session, marking a +0.5% move from the prior day. This change lagged the S&P 500's 1.12% gain on the day. At the same time, the Dow added 1.01%, and the tech-heavy Nasdaq lost 0.08%.
Prior to today's trading, shares of the agribusiness giant had gained 14.81% over the past month. This has outpaced the Consumer Staples sector's gain of 9.01% and the S&P 500's gain of 4.63% in that time.
Investors will be hoping for strength from Archer Daniels Midland as it approaches its next earnings release, which is expected to be April 26, 2022. On that day, Archer Daniels Midland is projected to report earnings of $1.33 per share, which would represent a year-over-year decline of 4.32%. Meanwhile, our latest consensus estimate is calling for revenue of $19.14 billion, up 1.31% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.20 per share and revenue of $86.42 billion, which would represent changes of +0.19% and +1.38%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Archer Daniels Midland. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.05% higher. Archer Daniels Midland is currently a Zacks Rank #2 (Buy).
In terms of valuation, Archer Daniels Midland is currently trading at a Forward P/E ratio of 18.28. For comparison, its industry has an average Forward P/E of 24.68, which means Archer Daniels Midland is trading at a discount to the group.
Investors should also note that ADM has a PEG ratio of 10.33 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Agriculture - Operations stocks are, on average, holding a PEG ratio of 2.08 based on yesterday's closing prices.
The Agriculture - Operations industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% 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.
View the Zacks #1 Rank List
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Archer Daniels Midland (ADM) Gains But Lags Market: What You Should Know
Archer Daniels Midland (ADM - Free Report) closed at $95.55 in the latest trading session, marking a +0.5% move from the prior day. This change lagged the S&P 500's 1.12% gain on the day. At the same time, the Dow added 1.01%, and the tech-heavy Nasdaq lost 0.08%.
Prior to today's trading, shares of the agribusiness giant had gained 14.81% over the past month. This has outpaced the Consumer Staples sector's gain of 9.01% and the S&P 500's gain of 4.63% in that time.
Investors will be hoping for strength from Archer Daniels Midland as it approaches its next earnings release, which is expected to be April 26, 2022. On that day, Archer Daniels Midland is projected to report earnings of $1.33 per share, which would represent a year-over-year decline of 4.32%. Meanwhile, our latest consensus estimate is calling for revenue of $19.14 billion, up 1.31% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.20 per share and revenue of $86.42 billion, which would represent changes of +0.19% and +1.38%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Archer Daniels Midland. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.05% higher. Archer Daniels Midland is currently a Zacks Rank #2 (Buy).
In terms of valuation, Archer Daniels Midland is currently trading at a Forward P/E ratio of 18.28. For comparison, its industry has an average Forward P/E of 24.68, which means Archer Daniels Midland is trading at a discount to the group.
Investors should also note that ADM has a PEG ratio of 10.33 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Agriculture - Operations stocks are, on average, holding a PEG ratio of 2.08 based on yesterday's closing prices.
The Agriculture - Operations industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% 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.