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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 $56.08, marking a +0.7% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.92%. On the other hand, the Dow registered a loss of 0.96%, and the technology-centric Nasdaq decreased by 1.6%.

Heading into today, shares of the agribusiness giant had lost 8.3% over the past month, lagging the Consumer Staples sector's loss of 1.33% and the S&P 500's gain of 2.68% in that time.

The upcoming earnings release of Archer Daniels Midland will be of great interest to investors. The company's earnings report is expected on November 5, 2024. The company is expected to report EPS of $1.31, down 19.63% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $20.97 billion, down 3.36% from the year-ago period.

ADM's full-year Zacks Consensus Estimates are calling for earnings of $5.18 per share and revenue of $88.09 billion. These results would represent year-over-year changes of -25.79% and -6.22%, respectively.

Investors should also note any recent changes to analyst estimates for Archer Daniels Midland. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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 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 2.88% lower. Archer Daniels Midland is currently sporting a Zacks Rank of #4 (Sell).

Looking at valuation, Archer Daniels Midland is presently trading at a Forward P/E ratio of 10.76. This valuation marks a discount compared to its industry's average Forward P/E of 20.41.

The Agriculture - Operations industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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