Archer Daniels Midland (ADM - Free Report) closed the most recent trading day at $46, moving -0.15% from the previous trading session. This change lagged the S&P 500's 2.3% gain on the day. Meanwhile, the Dow gained 2.5%, and the Nasdaq, a tech-heavy index, added 2.95%.
Prior to today's trading, shares of the agribusiness giant had lost 4.02% over the past month. This has lagged the Consumer Staples sector's gain of 1.34% and the S&P 500's gain of 1.21% in that time.
Wall Street will be looking for positivity from ADM as it approaches its next earnings report date. This is expected to be February 5, 2019. In that report, analysts expect ADM to post earnings of $0.92 per share. This would mark year-over-year growth of 12.2%. Our most recent consensus estimate is calling for quarterly revenue of $17.45 billion, up 8.6% from the year-ago period.
ADM's full-year Zacks Consensus Estimates are calling for earnings of $3.53 per share and revenue of $64.83 billion. These results would represent year-over-year changes of +45.27% and +6.58%, respectively.
Investors should also note any recent changes to analyst estimates for ADM. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.65% higher. ADM is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, ADM is currently trading at a Forward P/E ratio of 13.07. For comparison, its industry has an average Forward P/E of 19.61, which means ADM is trading at a discount to the group.
The Agriculture - Operations industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.