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Archer Daniels Midland (ADM) Declines More Than Market: Some Information for Investors

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Archer Daniels Midland (ADM - Free Report) closed the most recent trading day at $61.36, moving -1.75% from the previous trading session. This move lagged the S&P 500's daily loss of 0.19%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq lost 0.36%.

Prior to today's trading, shares of the agribusiness giant had gained 5.4% over the past month. This has outpaced the Consumer Staples sector's gain of 2.12% and the S&P 500's gain of 2.06% in that time.

Market participants will be closely following the financial results of Archer Daniels Midland in its upcoming release. On that day, Archer Daniels Midland is projected to report earnings of $1.38 per share, which would represent a year-over-year decline of 15.34%. Alongside, our most recent consensus estimate is anticipating revenue of $20.94 billion, indicating a 3.49% downward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $5.33 per share and a revenue of $88.06 billion, demonstrating changes of -23.64% and -6.25%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Archer Daniels Midland. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Archer Daniels Midland holds a Zacks Rank of #4 (Sell).

With respect to valuation, Archer Daniels Midland is currently being traded at a Forward P/E ratio of 11.72. For comparison, its industry has an average Forward P/E of 21.84, which means Archer Daniels Midland is trading at a discount to the group.

The Agriculture - Operations industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 59, this industry ranks in the top 24% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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