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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 $79.70, marking a +1.22% move from the previous day. This change outpaced the S&P 500's 0.57% loss on the day. At the same time, the Dow lost 0.05%, and the tech-heavy Nasdaq lost 1.04%.

Coming into today, shares of the agribusiness giant had lost 7.3% in the past month. In that same time, the Consumer Staples sector lost 2.84%, while the S&P 500 gained 0.64%.

Investors will be hoping for strength from Archer Daniels Midland as it approaches its next earnings release. In that report, analysts expect Archer Daniels Midland to post earnings of $1.55 per share. This would mark a year-over-year decline of 16.67%. Our most recent consensus estimate is calling for quarterly revenue of $23.67 billion, down 4.12% from the year-ago period.

ADM's full-year Zacks Consensus Estimates are calling for earnings of $7.18 per share and revenue of $98.03 billion. These results would represent year-over-year changes of -8.54% and -3.74%, respectively.

Any recent changes to analyst estimates for Archer Daniels Midland should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.18% lower. Archer Daniels Midland is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Archer Daniels Midland is currently trading at a Forward P/E ratio of 10.97. This valuation marks a discount compared to its industry's average Forward P/E of 17.21.

Also, we should mention that ADM has a PEG ratio of 1.72. 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 industry currently had an average PEG ratio of 1.16 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 94, which puts it in the top 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.

You can find more information on all of these metrics, and much more, on

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