In the latest market close, Archer Daniels Midland (ADM – Free Report) reached $46.10, with a -0.9% movement compared to the previous day. This move lagged the S&P 500’s daily gain of 0.08%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq added 0.52%.
Shares of the agribusiness giant witnessed a loss of 0.06% over the previous month, trailing the performance of the Consumer Staples sector with its gain of 1.88% and outperforming the S&P 500’s loss of 7.33%.
The upcoming earnings release of Archer Daniels Midland will be of great interest to investors. The company’s upcoming EPS is projected at $0.71, signifying a 51.37% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $20.74 billion, indicating a 5.06% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.24 per share and revenue of $88.43 billion, which would represent changes of -10.55% and +3.39%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Archer Daniels Midland. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.67% downward. At present, Archer Daniels Midland boasts a Zacks Rank of #4 (Sell).
Looking at valuation, Archer Daniels Midland is presently trading at a Forward P/E ratio of 10.97. This signifies a discount in comparison to the average Forward P/E of 12.82 for its industry.
We can also see that ADM currently has a PEG ratio of 1.51. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. The average PEG ratio for the Agriculture – Operations industry stood at 1.64 at the close of the market yesterday.
The Agriculture – Operations industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 193, finds itself in the bottom 24% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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