Archer Daniels Midland (ADM) Stock Declines While Market Improves: Some Information for Investors

Zacks
01-16

The latest trading session saw Archer Daniels Midland (ADM) ending at $51.14, denoting a -0.1% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 1.83%. On the other hand, the Dow registered a gain of 1.65%, and the technology-centric Nasdaq increased by 2.45%.

The agribusiness giant's stock has dropped by 0.58% in the past month, exceeding the Consumer Staples sector's loss of 7.07% and the S&P 500's loss of 3.31%.

The upcoming earnings release of Archer Daniels Midland will be of great interest to investors. The company's upcoming EPS is projected at $1.08, signifying a 20.59% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $21.86 billion, reflecting a 4.86% fall from the equivalent quarter last year.

It is also important to note the 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Archer Daniels Midland possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Archer Daniels Midland is currently exchanging hands at a Forward P/E ratio of 11.46. This signifies a discount in comparison to the average Forward P/E of 12.33 for its industry.

The Agriculture - Operations industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 146, finds itself in the bottom 42% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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