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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 the most recent trading day at $73.17, moving +0.87% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.93%. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 1.71%.
Heading into today, shares of the agribusiness giant had lost 3.77% over the past month, outpacing the Consumer Staples sector's loss of 4.15% and lagging the S&P 500's gain of 4.61% in that time.
Investors will be hoping for strength from Archer Daniels Midland as it approaches its next earnings release. On that day, Archer Daniels Midland is projected to report earnings of $1.54 per share, which would represent a year-over-year decline of 28.37%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $24.94 billion, down 8.58% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.84 per share and revenue of $97.8 billion, which would represent changes of -12.87% and -3.98%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Archer Daniels Midland. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
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 0.05% lower. Archer Daniels Midland currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Archer Daniels Midland has a Forward P/E ratio of 10.6 right now. Its industry sports an average Forward P/E of 18.89, so we one might conclude that Archer Daniels Midland is trading at a discount comparatively.
It is also worth noting that ADM currently has a PEG ratio of 1.66. 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. The Agriculture - Operations was holding an average PEG ratio of 1.3 at yesterday's closing price.
The Agriculture - Operations industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 215, which puts it in the bottom 15% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Archer Daniels Midland (ADM) Gains But Lags Market: What You Should Know
Archer Daniels Midland (ADM - Free Report) closed the most recent trading day at $73.17, moving +0.87% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.93%. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 1.71%.
Heading into today, shares of the agribusiness giant had lost 3.77% over the past month, outpacing the Consumer Staples sector's loss of 4.15% and lagging the S&P 500's gain of 4.61% in that time.
Investors will be hoping for strength from Archer Daniels Midland as it approaches its next earnings release. On that day, Archer Daniels Midland is projected to report earnings of $1.54 per share, which would represent a year-over-year decline of 28.37%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $24.94 billion, down 8.58% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.84 per share and revenue of $97.8 billion, which would represent changes of -12.87% and -3.98%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Archer Daniels Midland. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
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 0.05% lower. Archer Daniels Midland currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Archer Daniels Midland has a Forward P/E ratio of 10.6 right now. Its industry sports an average Forward P/E of 18.89, so we one might conclude that Archer Daniels Midland is trading at a discount comparatively.
It is also worth noting that ADM currently has a PEG ratio of 1.66. 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. The Agriculture - Operations was holding an average PEG ratio of 1.3 at yesterday's closing price.
The Agriculture - Operations industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 215, which puts it in the bottom 15% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.