Yahoo Finance Archer Daniels Midland (ADM) Laps the Stock Market: Here's Why
In the latest trading session, Archer Daniels Midland (ADM) closed at $61.95, marking a +1.11% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.26%. On the other hand, the Dow registered a gain of 0.18%, and the technology-centric Nasdaq increased by 0.35%.
The agribusiness giant's shares have seen a decrease of 2.72% over the last month, not keeping up with the Consumer Staples sector's loss of 0.52% and the S&P 500's gain of 3.25%.
The investment community will be closely monitoring the performance of Archer Daniels Midland in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.34, reflecting a 29.1% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $23.47 billion, down 6.84% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.61 per share and a revenue of $89.61 billion, signifying shifts of -19.63% and -4.61%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Archer Daniels Midland. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 0.13% higher within the past month. At present, Archer Daniels Midland boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Archer Daniels Midland is at present trading with a Forward P/E ratio of 10.92. This indicates a discount in contrast to its industry's Forward P/E of 21.84.
The Agriculture - Operations industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 215, placing it within the bottom 15% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Archer Daniels Midland Company (ADM) : Free Stock Analysis Report
