Yahoo Finance Archer Daniels Midland (ADM) Exceeds Market Returns: Some Facts to Consider
Archer Daniels Midland (ADM) closed at $60.16 in the latest trading session, marking a +1.11% move from the prior day. This change outpaced the S&P 500's 0.77% gain on the day. Meanwhile, the Dow experienced a rise of 0.49%, and the technology-dominated Nasdaq saw an increase of 0.95%.
Shares of the agribusiness giant witnessed a loss of 3.44% over the previous month, beating the performance of the Consumer Staples sector with its loss of 4.12% and underperforming the S&P 500's gain of 3.71%.
The investment community will be closely monitoring the performance of Archer Daniels Midland in its forthcoming earnings report. The company's upcoming EPS is projected at $1.34, signifying a 29.1% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $23.47 billion, showing a 6.84% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.61 per share and a revenue of $89.61 billion, indicating changes of -19.63% and -4.61%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Archer Daniels Midland. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.13% higher. Currently, Archer Daniels Midland is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Archer Daniels Midland is currently being traded at a Forward P/E ratio of 10.61. This represents a discount compared to its industry's average Forward P/E of 21.49.
The Agriculture - Operations industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 215, putting it in the bottom 15% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Archer Daniels Midland Company (ADM) : Free Stock Analysis Report