In the latest trading session, Archer Daniels Midland (ADM) closed at $70.90, marking a +0.68% move from the previous day. This move outpaced the S&P 500’s daily loss of 1.42%. Elsewhere, the Dow lost 0.49%, while the tech-heavy Nasdaq lost 0.47%.
Coming into today, shares of the agribusiness giant had gained 8.21% in the past month. In that same time, the Consumer Staples sector gained 4.57%, while the S&P 500 gained 0.39%.
Wall Street will be looking for positivity from Archer Daniels Midland as it approaches its next earnings report date. The company is expected to report EPS of $1.25, up 3.31% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.37 billion, up 13.31% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Archer Daniels Midland. 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, 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 0.99% higher. Archer Daniels Midland is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Archer Daniels Midland is currently trading at a Forward P/E ratio of 15.05. This valuation marks a discount compared to its industry’s average Forward P/E of 18.68.
Investors should also note that ADM has a PEG ratio of 1.8 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. Agriculture – Operations stocks are, on average, holding a PEG ratio of 1.2 based on yesterday’s closing prices.
The Agriculture – Operations industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 215, which puts it in the bottom 16% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Archer Daniels Midland Company (ADM): Free Stock Analysis Report
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