Archer Daniels Midland (ADM) Rises Yet Lags Behind Market: Some Facts Worth Knowing

Archer Daniels Midland (ADM) closed at $48.54 in the latest trading session, marking a +0.94% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 2.51%. Meanwhile, the Dow experienced a rise of 2.66%, and the technology-dominated Nasdaq saw an increase of 2.71%.Prior to today's trading, shares of the agribusiness giant had gained 4.7% over the past month. This has outpaced the Consumer Staples sector's gain of 2.1% and the S&P 500's loss of 8.86% in that time.The upcoming earnings release of Archer Daniels Midland will be of great interest to investors. The company is forecasted to report an EPS of $0.70, showcasing a 52.05% downward movement from the corresponding quarter of the prior 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.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 take note of any recent adjustments to analyst estimates for Archer Daniels Midland. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.47% lower. As of now, Archer Daniels Midland holds a Zacks Rank of #4 (Sell).From a valuation perspective, Archer Daniels Midland is currently exchanging hands at a Forward P/E ratio of 11.39. Its industry sports an average Forward P/E of 12.84, so one might conclude that Archer Daniels Midland is trading at a discount comparatively.We can also see that ADM currently has a PEG ratio of 1.91. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Agriculture - Operations industry stood at 1.73 at the close of the market yesterday.The Agriculture - Operations industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 75, putting it in the top 31% of all 250+ industries.The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 follow all of these stock-moving metrics, and many more, on Zacks.com.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Archer Daniels Midland Company (ADM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks