Back to top

Image: Bigstock

Archer Daniels Midland (ADM) Surpasses Market Returns: Some Facts Worth Knowing

Read MoreHide Full Article

Archer Daniels Midland (ADM - Free Report) closed the latest trading day at $48.74, indicating a +1.75% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.55%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 0.63%.

Shares of the agribusiness giant have depreciated by 4.01% over the course of the past month, underperforming the Consumer Staples sector's gain of 1.91% and the S&P 500's gain of 6.29%.

Analysts and investors alike will be keeping a close eye on the performance of Archer Daniels Midland in its upcoming earnings disclosure. In that report, analysts expect Archer Daniels Midland to post earnings of $0.95 per share. This would mark a year-over-year decline of 7.77%. Our most recent consensus estimate is calling for quarterly revenue of $22.1 billion, down 0.68% from the year-ago period.

ADM's full-year Zacks Consensus Estimates are calling for earnings of $4.07 per share and revenue of $85.03 billion. These results would represent year-over-year changes of -14.14% and -0.58%, respectively.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Archer Daniels Midland. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Archer Daniels Midland is carrying a Zacks Rank of #4 (Sell).

Investors should also note Archer Daniels Midland's current valuation metrics, including its Forward P/E ratio of 11.78. This denotes a discount relative to the industry's average Forward P/E of 14.8.

We can additionally observe that ADM currently boasts a PEG ratio of 2.65. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Agriculture - Operations was holding an average PEG ratio of 1.63 at yesterday's closing price.

The Agriculture - Operations industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Archer Daniels Midland Company (ADM) - free report >>

Published in