Archer Daniels Midland (ADM) Gains As Market Dips: What You Should Know
In the latest market close, Archer Daniels Midland (ADM) reached $60, with a +1.06% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.13%. Elsewhere, the Dow saw an upswing of 0.33%, while the tech-heavy Nasdaq depreciated by 0.39%.
The agribusiness giant's shares have seen a decrease of 2.42% over the last month, not keeping up with the Consumer Staples sector's gain of 2.28% and the S&P 500's gain of 2.43%.
Market participants will be closely following the financial results of Archer Daniels Midland in its upcoming release. The company's earnings per share (EPS) are projected to be $1.38, reflecting a 15.34% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $20.94 billion, indicating a 3.49% decrease compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.33 per share and revenue of $88.06 billion, indicating changes of -23.64% and -6.25%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Archer Daniels Midland should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection remained stagnant. Archer Daniels Midland is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Archer Daniels Midland has a Forward P/E ratio of 11.14 right now. Its industry sports an average Forward P/E of 21.08, so one might conclude that Archer Daniels Midland is trading at a discount comparatively.
The Agriculture - Operations industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% 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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Archer Daniels Midland Company (ADM) : Free Stock Analysis Report