Advertisement
Singapore markets closed

  • Straits Times Index

    3,176.51
    -11.15 (-0.35%)
     

  • Nikkei

    37,068.35
    -1,011.35 (-2.66%)
     

  • Hang Seng

    16,224.14
    -161.73 (-0.99%)
     

  • FTSE 100

    7,834.67
    -42.38 (-0.54%)
     

  • Bitcoin USD

    64,975.04
    +2,419.55 (+3.87%)
     

  • CMC Crypto 200

    1,330.45
    +17.82 (+1.36%)
     

  • S&P 500

    5,007.45
    -3.67 (-0.07%)
     

  • Dow

    37,852.73
    +77.35 (+0.20%)
     

  • Nasdaq

    15,535.13
    -66.37 (-0.43%)
     

  • Gold

    2,394.30
    -3.70 (-0.15%)
     

  • Crude Oil

    82.42
    -0.31 (-0.37%)
     

  • 10-Yr Bond

    4.6100
    -0.0370 (-0.80%)
     

  • FTSE Bursa Malaysia

    1,547.57
    +2.81 (+0.18%)
     

  • Jakarta Composite Index

    7,087.32
    -79.50 (-1.11%)
     

  • PSE Index

    6,443.00
    -80.19 (-1.23%)
     

Archer Daniels Midland (ADM) Gains As Market Dips: What You Should Know

Zacks Equity Research
Updated
Does MasTec (MTZ) have what it takes to be a top stock pick for momentum investors? Let's find out.

Archer Daniels Midland (ADM) closed the most recent trading day at $49.21, moving +0.37% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.44%. Meanwhile, the Dow lost 1.27%, and the Nasdaq, a tech-heavy index, lost 2.06%.

Heading into today, shares of the agribusiness giant had lost 1.82% over the past month, outpacing the Consumer Staples sector's loss of 3.96% and the S&P 500's loss of 2.61% in that time.

Investors will be hoping for strength from ADM as it approaches its next earnings release, which is expected to be November 6, 2018. In that report, analysts expect ADM to post earnings of $0.78 per share. This would mark year-over-year growth of 73.33%. Meanwhile, our latest consensus estimate is calling for revenue of $15.92 billion, up 7.4% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.44 per share and revenue of $64.70 billion. These totals would mark changes of +41.56% and +6.37%, respectively, from last year.

ADVERTISEMENT

Investors might also notice recent changes to analyst estimates for ADM. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. ADM is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, ADM is currently trading at a Forward P/E ratio of 14.27. Its industry sports an average Forward P/E of 24.47, so we one might conclude that ADM is trading at a discount comparatively.

The Agriculture - Operations industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 176, putting it in the bottom 31% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Archer Daniels Midland Company (ADM) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.