Archer Daniels Midland (ADM) closed the most recent trading day at $47.87, moving -0.85% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 1.97%. Elsewhere, the Dow saw a downswing of 1.69%, while the tech-heavy Nasdaq depreciated by 2.7%.
Coming into today, shares of the agribusiness giant had gained 3.63% in the past month. In that same time, the Consumer Staples sector gained 1.27%, while the S&P 500 lost 2.79%.
The investment community will be paying close attention to the earnings performance of Archer Daniels Midland in its upcoming release. The company is predicted to post an EPS of $0.71, indicating a 51.37% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $20.74 billion, indicating a 5.06% decrease compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.24 per share and a revenue of $88.43 billion, indicating changes of -10.55% and +3.39%, respectively, from the former year.
Any recent changes to analyst estimates for Archer Daniels Midland should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.35% lower. Currently, Archer Daniels Midland is carrying a Zacks Rank of #4 (Sell).
Investors should also note Archer Daniels Midland's current valuation metrics, including its Forward P/E ratio of 11.38. This expresses a discount compared to the average Forward P/E of 12.9 of its industry.
We can also see that ADM currently has a PEG ratio of 1.57. 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. By the end of yesterday's trading, the Agriculture - Operations industry had an average PEG ratio of 1.64.
The Agriculture - Operations industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 199, this industry ranks in the bottom 21% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
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