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Archer Daniels Midland (ADM) Laps the Stock Market: Here's Why
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In the latest close session, Archer Daniels Midland (ADM - Free Report) was up +1.94% at $72.12. The stock exceeded the S&P 500, which registered a gain of 0.25% for the day. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq appreciated by 0.47%.
Shares of the agribusiness giant have appreciated by 1.78% over the course of the past month, outperforming the Consumer Staples sector's loss of 6.18%, and the S&P 500's loss of 1.88%.
Market participants will be closely following the financial results of Archer Daniels Midland in its upcoming release. The company is predicted to post an EPS of $0.71, indicating a 1.43% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $20.67 billion, indicating a 2.47% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $4.21 per share and a revenue of $83.36 billion, demonstrating changes of +22.74% and +3.85%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Archer Daniels Midland. 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 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. Within the past 30 days, our consensus EPS projection has moved 6.53% higher. Right now, Archer Daniels Midland possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Archer Daniels Midland is currently exchanging hands at a Forward P/E ratio of 16.8. This valuation marks a premium compared to its industry average Forward P/E of 14.57.
It is also worth noting that ADM currently has a PEG ratio of 0.89. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ADM's industry had an average PEG ratio of 1.23 as of yesterday's close.
The Agriculture - Operations industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 201, positioning it in the bottom 18% of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Archer Daniels Midland (ADM) Laps the Stock Market: Here's Why
In the latest close session, Archer Daniels Midland (ADM - Free Report) was up +1.94% at $72.12. The stock exceeded the S&P 500, which registered a gain of 0.25% for the day. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq appreciated by 0.47%.
Shares of the agribusiness giant have appreciated by 1.78% over the course of the past month, outperforming the Consumer Staples sector's loss of 6.18%, and the S&P 500's loss of 1.88%.
Market participants will be closely following the financial results of Archer Daniels Midland in its upcoming release. The company is predicted to post an EPS of $0.71, indicating a 1.43% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $20.67 billion, indicating a 2.47% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $4.21 per share and a revenue of $83.36 billion, demonstrating changes of +22.74% and +3.85%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Archer Daniels Midland. 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 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. Within the past 30 days, our consensus EPS projection has moved 6.53% higher. Right now, Archer Daniels Midland possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Archer Daniels Midland is currently exchanging hands at a Forward P/E ratio of 16.8. This valuation marks a premium compared to its industry average Forward P/E of 14.57.
It is also worth noting that ADM currently has a PEG ratio of 0.89. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ADM's industry had an average PEG ratio of 1.23 as of yesterday's close.
The Agriculture - Operations industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 201, positioning it in the bottom 18% of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.