Archer Daniels Midland (ADM) Stock Drops Despite Market Gains: Important Facts to Note

In the latest trading session, Archer Daniels Midland (ADM) closed at $48.05, marking a -0.41% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.06%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.1%.The agribusiness giant's stock has climbed by 0.79% in the past month, falling short of the Consumer Staples sector's gain of 2.15% and outpacing the S&P 500's loss of 4.29%.The investment community will be closely monitoring the performance of Archer Daniels Midland in its forthcoming earnings report. The company is scheduled to release its earnings on May 6, 2025. On that day, Archer Daniels Midland is projected to report earnings of $0.69 per share, which would represent a year-over-year decline of 52.74%. In the meantime, our current consensus estimate forecasts the revenue to be $20.69 billion, indicating a 5.28% decline compared to the corresponding quarter of the prior year.For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.16 per share and a revenue of $87.87 billion, signifying shifts of -12.24% and +2.74%, respectively, from the last year.Investors might also notice recent changes to analyst estimates for Archer Daniels Midland. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.Our research demonstrates that these adjustments in estimates directly associate with imminent 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, 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 witnessed a 1.93% decrease. Archer Daniels Midland currently has a Zacks Rank of #3 (Hold).Looking at valuation, Archer Daniels Midland is presently trading at a Forward P/E ratio of 11.6. This denotes a discount relative to the industry's average Forward P/E of 14.55.It's also important to note that ADM currently trades at a PEG ratio of 1.94. 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. As of the close of trade yesterday, the Agriculture - Operations industry held an average PEG ratio of 1.51.The Agriculture - Operations industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 65, placing it within the top 27% of over 250 industries.The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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