In the latest trading session, Archer Daniels Midland (ADM - Free Report) closed at $43.67, marking a -0.09% move from the previous day. This change lagged the S&P 500's 0.14% gain on the day. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, added 0.68%.
Coming into today, shares of the agribusiness giant had gained 7.47% in the past month. In that same time, the Consumer Staples sector gained 4.7%, while the S&P 500 gained 9.43%.
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 $17.10 billion, up 6.39% 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. As a result, we can interpret positive estimate revisions as a good sign for 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. The Zacks Consensus EPS estimate has moved 0.21% higher within the past month. ADM is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, ADM is currently trading at a Forward P/E ratio of 12.09. For comparison, its industry has an average Forward P/E of 12.09, which means ADM is trading at a no noticeable deviation to the group.
The Agriculture - Operations industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow ADM in the coming trading sessions, be sure to utilize Zacks.com.