Archer Daniels Midland (ADM) Rises As Market Takes a Dip: Key Facts

Zacks
04-17

Archer Daniels Midland (ADM) closed at $46.13 in the latest trading session, marking a +0.13% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 2.24%. Meanwhile, the Dow lost 1.73%, and the Nasdaq, a tech-heavy index, lost 3.07%.

Shares of the agribusiness giant have depreciated by 3.38% over the course of the past month, underperforming the Consumer Staples sector's gain of 1.31% and outperforming the S&P 500's loss of 4.17%.

Analysts and investors alike will be keeping a close eye on the performance of Archer Daniels Midland in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.70, indicating a 52.05% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $20.74 billion, down 5.06% from the prior-year quarter.

ADM's full-year Zacks Consensus Estimates are calling for earnings of $4.22 per share and revenue of $88.43 billion. These results would represent year-over-year changes of -10.97% and +3.39%, respectively.

Investors should also note any recent changes to analyst estimates for Archer Daniels Midland. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.47% decrease. Archer Daniels Midland is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, Archer Daniels Midland is presently being traded at a Forward P/E ratio of 10.91. This expresses a discount compared to the average Forward P/E of 12.06 of its industry.

Investors should also note that ADM has a PEG ratio of 1.5 right now. 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. By the end of yesterday's trading, the Agriculture - Operations industry had an average PEG ratio of 1.54.

The Agriculture - Operations industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 151, putting it in the bottom 40% 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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This article originally published on Zacks Investment Research (zacks.com).

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