Back to top

Image: Bigstock

Archer Daniels Midland (ADM) Falls More Steeply Than Broader Market: What Investors Need to Know

Read MoreHide Full Article

Archer Daniels Midland (ADM - Free Report) ended the recent trading session at $65.18, demonstrating a -2.09% change from the preceding day's closing price. This change lagged the S&P 500's 0.06% loss on the day. Elsewhere, the Dow saw a downswing of 0.17%, while the tech-heavy Nasdaq depreciated by 0.06%.

Coming into today, shares of the agribusiness giant had gained 14.19% in the past month. In that same time, the Consumer Staples sector gained 1.35%, while the S&P 500 gained 1.99%.

Analysts and investors alike will be keeping a close eye on the performance of Archer Daniels Midland in its upcoming earnings disclosure. The company's earnings report is set to go public on February 3, 2026. The company's upcoming EPS is projected at $0.83, signifying a 27.19% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $22.14 billion, reflecting a 2.98% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.39 per share and revenue of $83.85 billion. These totals would mark changes of -28.48% and 0%, respectively, from last year.

Any recent changes to analyst estimates for Archer Daniels Midland should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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, there's been a 1.58% fall in the Zacks Consensus EPS estimate. At present, Archer Daniels Midland boasts a Zacks Rank of #5 (Strong Sell).

In the context of valuation, Archer Daniels Midland is at present trading with a Forward P/E ratio of 16.03. This valuation marks a premium compared to its industry average Forward P/E of 15.11.

Also, we should mention that ADM has a PEG ratio of 4.63. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Agriculture - Operations industry had an average PEG ratio of 1.62 as trading concluded yesterday.

The Agriculture - Operations industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 106, putting it in the top 44% 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.

You can find more information on all of these metrics, and much 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