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Are Investors Undervaluing Archer Daniels Midland (ADM) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Archer Daniels Midland (ADM - Free Report) . ADM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 14.74 right now. For comparison, its industry sports an average P/E of 14.90. Over the past 52 weeks, ADM's Forward P/E has been as high as 116.19 and as low as 11.67, with a median of 14.50.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ADM has a P/S ratio of 0.52. This compares to its industry's average P/S of 0.86.
These are only a few of the key metrics included in Archer Daniels Midland's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ADM looks like an impressive value stock at the moment.
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Are Investors Undervaluing Archer Daniels Midland (ADM) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Archer Daniels Midland (ADM - Free Report) . ADM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 14.74 right now. For comparison, its industry sports an average P/E of 14.90. Over the past 52 weeks, ADM's Forward P/E has been as high as 116.19 and as low as 11.67, with a median of 14.50.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ADM has a P/S ratio of 0.52. This compares to its industry's average P/S of 0.86.
These are only a few of the key metrics included in Archer Daniels Midland's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ADM looks like an impressive value stock at the moment.