In the latest close session, Archer Daniels Midland (ADM) was up +2.03% at $82.04. The stock's performance was ahead of the S&P 500's daily loss of 0.79%. Meanwhile, the Dow experienced a drop of 0.26%, and the technology-dominated Nasdaq saw a decrease of 1.55%.
Shares of the agribusiness giant have appreciated by 0.21% over the course of the past month, outperforming the Consumer Staples sector's gain of 0.06%, and lagging the S&P 500's gain of 4.28%.
The upcoming earnings release of Archer Daniels Midland will be of great interest to investors. It is anticipated that the company will report an EPS of $1.28, marking a 37.63% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $22.38 billion, up 5.72% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.81 per share and revenue of $84.49 billion. These totals would mark changes of +40.23% and +5.26%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Archer Daniels Midland. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 has moved 6.4% higher. Archer Daniels Midland presently features a Zacks Rank of #2 (Buy).
With respect to valuation, Archer Daniels Midland is currently being traded at a Forward P/E ratio of 16.74. This expresses a premium compared to the average Forward P/E of 13.52 of its industry.
The Agriculture - Operations industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 109, which puts it in the top 45% of all 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Archer Daniels Midland Company (ADM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).