In the latest trading session, Archer Daniels Midland (ADM) closed at $68.94, marking a +0.07% move from the previous day. The stock outpaced the S&P 500’s daily loss of 1.89%. Meanwhile, the Dow lost 1.3%, and the Nasdaq, a tech-heavy index, lost 0.17%.
Prior to today’s trading, shares of the agribusiness giant had gained 5.27% over the past month. This has outpaced the Consumer Staples sector’s gain of 1.88% and the S&P 500’s loss of 1.79% in that time.
Investors will be hoping for strength from Archer Daniels Midland as it approaches its next earnings release, which is expected to be January 25, 2022. In that report, analysts expect Archer Daniels Midland to post earnings of $1.36 per share. This would mark year-over-year growth of 12.4%. Meanwhile, our latest consensus estimate is calling for revenue of $20.37 billion, up 13.31% from the prior-year quarter.
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 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 2.25% higher. Archer Daniels Midland is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Archer Daniels Midland’s current valuation metrics, including its Forward P/E ratio of 14.52. This represents a discount compared to its industry’s average Forward P/E of 17.79.
Also, we should mention that ADM has a PEG ratio of 1.73. 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. ADM’s industry had an average PEG ratio of 1.14 as of yesterday’s close.
The Agriculture – Operations industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 211, putting it in the bottom 18% 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.
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