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Archer Daniels Midland (ADM) Increases Despite Market Slip: Here's What You Need to Know

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Archer Daniels Midland (ADM - Free Report) closed the most recent trading day at $58.56, moving +1% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 1.16%. Elsewhere, the Dow lost 0.47%, while the tech-heavy Nasdaq lost 1.81%.

Coming into today, shares of the agribusiness giant had lost 5% in the past month. In that same time, the Consumer Staples sector gained 1.27%, while the S&P 500 gained 1.03%.

The investment community will be paying close attention to the earnings performance of Archer Daniels Midland in its upcoming release. It is anticipated that the company will report an EPS of $0.84, marking a 26.32% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $22.14 billion, up 2.98% from the year-ago period.

ADM's full-year Zacks Consensus Estimates are calling for earnings of $3.4 per share and revenue of $83.85 billion. These results would represent year-over-year changes of -28.27% and -1.96%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Archer Daniels Midland. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.29% lower. Right now, Archer Daniels Midland possesses a Zacks Rank of #5 (Strong Sell).

From a valuation perspective, Archer Daniels Midland is currently exchanging hands at a Forward P/E ratio of 17.07. This denotes no noticeable deviation relative to the industry average Forward P/E of 17.07.

One should further note that ADM currently holds a PEG ratio of 4.93. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ADM's industry had an average PEG ratio of 2.2 as of yesterday's close.

The Agriculture - Operations industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 208, putting it in the bottom 16% 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.

To follow ADM in the coming trading sessions, be sure to utilize Zacks.com.


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