Archer Daniels Midland (ADM) closed the most recent trading day at $36.48, moving +1.39% from the previous trading session. This change lagged the S&P 500's 3.41% gain on the day. Elsewhere, the Dow gained 3.44%, while the tech-heavy Nasdaq added 2.58%.
Heading into today, shares of the agribusiness giant had lost 3.07% over the past month, outpacing the Consumer Staples sector's loss of 10.86% and the S&P 500's loss of 10.46% in that time.
Investors will be hoping for strength from ADM as it approaches its next earnings release. In that report, analysts expect ADM to post earnings of $0.58 per share. This would mark year-over-year growth of 26.09%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.17 billion, down 0.88% from the year-ago period.
ADM's full-year Zacks Consensus Estimates are calling for earnings of $3.19 per share and revenue of $65.65 billion. These results would represent year-over-year changes of -1.54% and +1.53%, respectively.
It is also important to note the recent changes to analyst estimates for ADM. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.1% lower. ADM currently has a Zacks Rank of #3 (Hold).
In terms of valuation, ADM is currently trading at a Forward P/E ratio of 11.28. Its industry sports an average Forward P/E of 18.34, 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 industry currently has a Zacks Industry Rank of 91, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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