In the latest trading session, Archer Daniels Midland (ADM) closed at $85.00, marking a -1.86% move from the previous day. This change lagged the S&P 500's 0.45% loss on the day. Meanwhile, the Dow lost 1.21%, and the Nasdaq, a tech-heavy index, lost 0.01%.
The agribusiness giant's shares have seen an increase of 5.05% over the last month, surpassing the Consumer Staples sector's loss of 0.85% and the S&P 500's loss of 2.43%.
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 $1.53, marking a 66.3% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $21.85 billion, up 7.24% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $5.22 per share and a revenue of $85.55 billion, demonstrating changes of +52.19% and +6.58%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Archer Daniels Midland. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding 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 its valuation, Archer Daniels Midland is holding a Forward P/E ratio of 16.58. This denotes a premium relative to the industry average Forward P/E of 12.92.
Also, we should mention that ADM has a PEG ratio of 2.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Agriculture - Operations stocks are, on average, holding a PEG ratio of 2.56 based on yesterday's closing prices.
The Agriculture - Operations industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 107, placing it within the top 44% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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).