This story originally appeared on Zacks
In the last trading session, Archer Daniels Midland (ADM) closed at $70.90, recording a move of +0.68% from the day before. The move outpaced the S&P 500’s daily loss of 1.42%. Elsewhere, the Dow Jones lost 0.49%, while the big tech Nasdaq lost 0.47%.
As of today, the shares of the agribusiness giant are up 8.21% in the last month. At the same time, the Consumer Goods sector gained 4.57%, while the S&P 500 Index rose 0.39%.
Wall Street will be looking for positivity from Archer Daniels Midland as it approaches the date of the next earnings report. The company is expected to report earnings per share at $1.25, up 3.31% from the previous quarter. Meanwhile, Zacks Consensus revenue report forecasts net sales of $20.37 billion, up 13.31% from the same period last year.
Investors should note any recent changes to analyst estimates for Archer Daniels Midland. These reviews help show the ever-changing nature of near-term business trends. With this in mind, we can take the positive rating reviews as a sign of optimism about the company’s business outlook.
Research indicates that these discretionary revisions are directly related to the stock’s near-term price momentum. To take advantage of this, we have developed Zacks Rank, a proprietary model that takes these discretionary changes into account and provides an actionable ranking system.
Ranging from #1 (strong buy) to #5 (strong sell), the Zacks Rank has a track record of outperforming externally audited, with the #1 stock having achieved a +25% average annual return since 1988. More in a month Last, Zacks Consensus EPS was up 0.99%. Archer Daniels Midland is currently ranked third (Hold) by Zacks.
In terms of valuation, Archer Daniels Midland is currently trading at a forward P/E of 15.05. This valuation represents a discount compared to the industry’s forward P/E average of 18.68.
Investors should also note that ADM has a PEG ratio of 1.8 at the moment. This metric is used similarly to the popular P/E ratio, but the PEG ratio also takes into account the expected earnings growth rate for the stock. Agriculture – Operations stocks have, on average, a price-to-commission ratio of 1.2 based on yesterday’s closing prices.
Agriculture – Operations industry is part of the consumer goods sector. The industry currently has a Zacks Industry Rating of 215, placing it in the lowest 16% of all 250+ industries.
Zacks Industry Ranking measures the strength of our industry groups by measuring the average Zacks rating of the individual stocks within the groups. Our research shows that industries ranked 50% outperform the bottom half by a factor of 2 to 1.
You can find more information about all of these metrics and more at Zacks.com.
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