In the latest trading session, Archer Daniels Midland (ADM) closed at $79.40, marking a -1.22% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.17%. Meanwhile, the Dow experienced a drop of 0.26%, and the technology-dominated Nasdaq saw a decrease of 0.09%.
The agribusiness giant's stock has dropped by 1.12% in the past month, exceeding the Consumer Staples sector's loss of 3.69% and lagging the S&P 500's loss of 0.24%.
The upcoming earnings release of Archer Daniels Midland will be of great interest to investors. The company is expected to report EPS of $1.53, up 66.3% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $21.85 billion, up 7.24% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.22 per share and a revenue of $85.55 billion, signifying shifts of +52.19% and +6.58%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Archer Daniels Midland. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Archer Daniels Midland is carrying a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Archer Daniels Midland is presently trading at a Forward P/E ratio of 15.39. This expresses a premium compared to the average Forward P/E of 11.88 of its industry.
Meanwhile, ADM's PEG ratio is currently 2.57. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Agriculture - Operations stocks are, on average, holding a PEG ratio of 2.39 based on yesterday's closing prices.
The Agriculture - Operations industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 99, positioning it in the top 41% 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.
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
This article originally published on Zacks Investment Research (zacks.com).