In the latest trading session, Archer Daniels Midland (ADM) closed at $64.22, marking a -1.61% move from the previous day. This move lagged the S&P 500’s daily loss of 1.14%. Meanwhile, the Dow lost 1.23%, and the Nasdaq, a tech-heavy index, lost 0.36%.
Heading into today, shares of the agribusiness giant had lost 0.11% over the past month, lagging the Consumer Staples sector’s gain of 1.61% and outpacing the S&P 500’s loss of 1.37% in that time.
Wall Street will be looking for positivity from Archer Daniels Midland as it approaches its next earnings report date. In that report, analysts expect Archer Daniels Midland to post earnings of $1.21 per share. This would mark no growth from the year-ago period. Meanwhile, our latest consensus estimate is calling for revenue of $20.13 billion, up 11.96% from the prior-year quarter.
ADM’s full-year Zacks Consensus Estimates are calling for earnings of $4.89 per share and revenue of $82.72 billion. These results would represent year-over-year changes of +36.21% and +28.53%, respectively.
Investors should also note any recent changes to analyst estimates for Archer Daniels Midland. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.23% higher. Archer Daniels Midland currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Archer Daniels Midland is currently trading at a Forward P/E ratio of 13.36. This represents a discount compared to its industry’s average Forward P/E of 21.71.
Investors should also note that ADM has a PEG ratio of 1.55 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The Agriculture – Operations was holding an average PEG ratio of 1.55 at yesterday’s closing price.
The Agriculture – Operations industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 115, putting it in the top 46% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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