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Why Archer Daniels Midland (ADM) Outpaced the Stock Market Today

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Archer Daniels Midland (ADM - Free Report) closed the most recent trading day at $62.45, moving +2.31% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.37%. On the other hand, the Dow registered a loss of 0.14%, and the technology-centric Nasdaq increased by 0.71%.

Shares of the agribusiness giant have depreciated by 3.02% over the course of the past month, outperforming the Consumer Staples sector's loss of 3.28%, and lagging the S&P 500's gain of 4.26%.

The investment community will be paying close attention to the earnings performance of Archer Daniels Midland in its upcoming release. The company's earnings per share (EPS) are projected to be $0.87, reflecting a 20.18% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $20.17 billion, showing a 1.18% escalation compared to the year-ago quarter.

ADM's full-year Zacks Consensus Estimates are calling for earnings of $3.99 per share and revenue of $83.75 billion. These results would represent year-over-year changes of -15.82% and -2.09%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Archer Daniels Midland. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Archer Daniels Midland boasts a Zacks Rank of #3 (Hold).

Looking at its valuation, Archer Daniels Midland is holding a Forward P/E ratio of 15.28. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 15.28.

It is also worth noting that ADM currently has a PEG ratio of 3.25. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Agriculture - Operations industry stood at 1.77 at the close of the market yesterday.

The Agriculture - Operations industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 150, placing it within the bottom 40% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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