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Archer Daniels Midland (ADM) Advances While Market Declines: Some Information for Investors

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In the latest market close, Archer Daniels Midland (ADM - Free Report) reached $47.25, with a +0.36% movement compared to the previous day. This change outpaced the S&P 500's 0.91% loss on the day. Meanwhile, the Dow lost 1.5%, and the Nasdaq, a tech-heavy index, lost 1.96%.

The agribusiness giant's stock has climbed by 4.11% in the past month, exceeding the Consumer Staples sector's gain of 3.05% and the S&P 500's loss of 7.38%.

The investment community will be closely monitoring the performance of Archer Daniels Midland in its forthcoming earnings report. The company's upcoming EPS is projected at $0.71, signifying a 51.37% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $20.74 billion, indicating a 5.06% decrease compared to the same quarter of the previous year.

ADM's full-year Zacks Consensus Estimates are calling for earnings of $4.24 per share and revenue of $88.43 billion. These results would represent year-over-year changes of -10.55% and +3.39%, respectively.

It is also important to note the recent changes to analyst estimates for Archer Daniels Midland. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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, there's been a 4.55% fall in the Zacks Consensus EPS estimate. Archer Daniels Midland is currently sporting a Zacks Rank of #4 (Sell).

From a valuation perspective, Archer Daniels Midland is currently exchanging hands at a Forward P/E ratio of 11.1. This denotes a discount relative to the industry's average Forward P/E of 11.61.

Also, we should mention that ADM has a PEG ratio of 1.53. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Agriculture - Operations industry currently had an average PEG ratio of 1.55 as of yesterday's close.

The Agriculture - Operations industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 218, placing it within the bottom 14% of over 250 industries.

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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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