In the latest close session, Archer Daniels Midland (ADM) was down 1.4% at $68.84. The stock's performance was behind the S&P 500's daily gain of 1.18%. At the same time, the Dow added 0.66%, and the tech-heavy Nasdaq gained 1.96%.
The stock of agribusiness giant has fallen by 1.31% in the past month, leading the Consumer Staples sector's loss of 1.99% and undershooting the S&P 500's gain of 3.93%.
Market participants will be closely following the financial results of Archer Daniels Midland in its upcoming release. The company is expected to report EPS of $0.67, down 4.29% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $21.11 billion, up 4.62% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.32 per share and revenue of $84.27 billion, indicating changes of +25.95% and +4.98%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Archer Daniels Midland. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, there's been a 2.52% rise in the Zacks Consensus EPS estimate. At present, Archer Daniels Midland boasts a Zacks Rank of #1 (Strong Buy).
Investors should also note Archer Daniels Midland's current valuation metrics, including its Forward P/E ratio of 16.17. This valuation marks a premium compared to its industry average Forward P/E of 14.51.
Investors should also note that ADM has a PEG ratio of 0.86 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Agriculture - Operations industry had an average PEG ratio of 1.31 as trading concluded yesterday.
The Agriculture - Operations industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 53, placing it within the top 22% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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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Archer Daniels Midland Company (ADM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).