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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 $79.41, marking a +0.04% move from the previous day. This change outpaced the S&P 500's 0.25% loss on the day. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq lost 1.88%.

Coming into today, shares of the agribusiness giant had lost 0.44% in the past month. In that same time, the Consumer Staples sector gained 2.67%, while the S&P 500 gained 1.48%.

Archer Daniels Midland will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.71, down 10% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $23.69 billion, up 0.18% from the prior-year quarter.

ADM's full-year Zacks Consensus Estimates are calling for earnings of $6.74 per share and revenue of $99.88 billion. These results would represent year-over-year changes of -14.14% and -1.94%, respectively.

Any recent changes to analyst estimates for Archer Daniels Midland should also be noted by investors. 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Archer Daniels Midland is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Archer Daniels Midland is holding a Forward P/E ratio of 11.78. Its industry sports an average Forward P/E of 16.77, so we one might conclude that Archer Daniels Midland is trading at a discount comparatively.

We can also see that ADM currently has a PEG ratio of 1.84. 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 1.43 based on yesterday's closing prices.

The Agriculture - Operations industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 214, which puts it in the bottom 16% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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