In the latest trading session, Archer Daniels Midland (ADM - Free Report) closed at $43.01, marking a +1.25% move from the previous day. This move outpaced the S&P 500's daily loss of 0.01%. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq gained 0.12%.
Heading into today, shares of the agribusiness giant had gained 1.19% over the past month, lagging the Consumer Staples sector's gain of 2.16% and the S&P 500's gain of 2.24% in that time.
ADM will be looking to display strength as it nears its next earnings release. On that day, ADM is projected to report earnings of $0.79 per share, which would represent year-over-year growth of 16.18%. Our most recent consensus estimate is calling for quarterly revenue of $16.70 billion, up 7.59% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.54 per share and revenue of $67.85 billion, which would represent changes of +1.14% and +5.45%, respectively, from the prior year.
Investors might also notice 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ADM is currently a Zacks Rank #3 (Hold).
Digging into valuation, ADM currently has a Forward P/E ratio of 11.99. For comparison, its industry has an average Forward P/E of 23.44, which means ADM is trading at a discount to the group.
The Agriculture - Operations industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 201, putting it in the bottom 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.