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Archer Daniels Midland (ADM) closed at $70.65 in the latest trading session, marking a -1.09% move from the prior day. This change lagged the S&P 500's daily loss of 0.61%. Meanwhile, the Dow lost 0.41%, and the Nasdaq, a tech-heavy index, added 10.45%.
Coming into today, shares of the agribusiness giant had lost 5.42% in the past month. In that same time, the Consumer Staples sector lost 6.6%, while the S&P 500 gained 1.05%.
Investors will be hoping for strength from Archer Daniels Midland as it approaches its next earnings release. On that day, Archer Daniels Midland is projected to report earnings of $1.54 per share, which would represent a year-over-year decline of 28.37%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $24.94 billion, down 8.58% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.84 per share and revenue of $97.8 billion. These totals would mark changes of -12.87% and -3.98%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Archer Daniels Midland. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.87% higher. Archer Daniels Midland is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Archer Daniels Midland is holding a Forward P/E ratio of 10.44. This represents a discount compared to its industry's average Forward P/E of 18.41.
Meanwhile, ADM's PEG ratio is currently 1.63. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Agriculture - Operations stocks are, on average, holding a PEG ratio of 1.26 based on yesterday's closing prices.
The Agriculture - Operations industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 213, which puts it in the bottom 16% of all 250+ industries.