In the latest trading session, Archer Daniels Midland (ADM - Free Report) closed at $44.17, marking a +1.75% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.32%. Meanwhile, the Dow gained 1.38%, and the Nasdaq, a tech-heavy index, added 1.74%.
Coming into today, shares of the agribusiness giant had gained 5.29% in the past month. In that same time, the Consumer Staples sector lost 0.52%, while the S&P 500 gained 4.16%.
Investors will be hoping for strength from ADM as it approaches its next earnings release, which is expected to be February 5, 2019. The company is expected to report EPS of $0.92, up 12.2% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $17.45 billion, up 8.6% from the year-ago period.
It is also important to note the recent changes to analyst estimates for ADM. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.21% higher. ADM currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that ADM has a Forward P/E ratio of 12.01 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 12.01.
The Agriculture - Operations industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 9, putting it in the top 4% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.