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Archer Daniels Midland (ADM) Gains But Lags Market: What You Should Know
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In the latest trading session, Archer Daniels Midland (ADM - Free Report) closed at $79.17, marking a +0.56% move from the previous day. This change lagged the S&P 500's 0.85% gain on the day. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq added 5.61%.
Heading into today, shares of the agribusiness giant had gained 7.63% over the past month, outpacing the Consumer Staples sector's gain of 3.16% and the S&P 500's gain of 3.18% in that time.
Archer Daniels Midland will be looking to display strength as it nears its next earnings release, which is expected to be July 25, 2023. On that day, Archer Daniels Midland is projected to report earnings of $1.58 per share, which would represent a year-over-year decline of 26.51%. Meanwhile, our latest consensus estimate is calling for revenue of $24.91 billion, down 8.72% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.79 per share and revenue of $97.12 billion, which would represent changes of -13.5% and -4.64%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Archer Daniels Midland. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 has moved 0.81% lower. Archer Daniels Midland currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Archer Daniels Midland is holding a Forward P/E ratio of 11.6. For comparison, its industry has an average Forward P/E of 17.19, which means Archer Daniels Midland is trading at a discount to the group.
It is also worth noting that ADM currently has a PEG ratio of 1.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ADM's industry had an average PEG ratio of 1.23 as of yesterday's close.
The Agriculture - Operations industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Archer Daniels Midland (ADM) Gains But Lags Market: What You Should Know
In the latest trading session, Archer Daniels Midland (ADM - Free Report) closed at $79.17, marking a +0.56% move from the previous day. This change lagged the S&P 500's 0.85% gain on the day. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq added 5.61%.
Heading into today, shares of the agribusiness giant had gained 7.63% over the past month, outpacing the Consumer Staples sector's gain of 3.16% and the S&P 500's gain of 3.18% in that time.
Archer Daniels Midland will be looking to display strength as it nears its next earnings release, which is expected to be July 25, 2023. On that day, Archer Daniels Midland is projected to report earnings of $1.58 per share, which would represent a year-over-year decline of 26.51%. Meanwhile, our latest consensus estimate is calling for revenue of $24.91 billion, down 8.72% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.79 per share and revenue of $97.12 billion, which would represent changes of -13.5% and -4.64%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Archer Daniels Midland. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 has moved 0.81% lower. Archer Daniels Midland currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Archer Daniels Midland is holding a Forward P/E ratio of 11.6. For comparison, its industry has an average Forward P/E of 17.19, which means Archer Daniels Midland is trading at a discount to the group.
It is also worth noting that ADM currently has a PEG ratio of 1.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ADM's industry had an average PEG ratio of 1.23 as of yesterday's close.
The Agriculture - Operations industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.