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Archer Daniels Midland (ADM) Outpaces Stock Market Gains: What You Should Know

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Archer Daniels Midland (ADM - Free Report) closed at $72.39 in the latest trading session, marking a +1.57% move from the prior day. This move outpaced the S&P 500's daily gain of 0.24%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 5.73%.

Coming into today, shares of the agribusiness giant had lost 5.48% in the past month. In that same time, the Consumer Staples sector lost 5.29%, while the S&P 500 gained 3.56%.

Archer Daniels Midland will be looking to display strength as it nears its next earnings release. In that report, analysts expect Archer Daniels Midland to post earnings of $1.54 per share. This would mark a year-over-year decline of 28.37%. Meanwhile, our latest consensus estimate is calling for revenue of $24.94 billion, down 8.58% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.84 per share and revenue of $97.8 billion. These totals would mark changes of -12.87% and -3.98%, respectively, from last year.

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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.57% higher. Archer Daniels Midland is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Archer Daniels Midland's current valuation metrics, including its Forward P/E ratio of 10.42. This represents a discount compared to its industry's average Forward P/E of 18.82.

Meanwhile, ADM's PEG ratio is currently 1.63. 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 was holding an average PEG ratio of 1.28 at yesterday's closing price.

The Agriculture - Operations industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 26% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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