Archer Daniels Midland (ADM) closed at $62.45, up 2.31% and outpacing the S&P 500, though its monthly performance lagged the broader market. The company faces projected Q1 EPS of $0.87, a 20.18% year-over-year decrease, despite an expected 1.18% revenue increase to $20.17 billion, with full-year estimates also showing declines. ADM currently holds a Zacks #3 (Hold) rank, and its PEG ratio of 3.25 significantly exceeds the Agriculture - Operations industry average of 1.77, indicating a potentially elevated valuation relative to growth, while the industry itself ranks in the bottom 40%.
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ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. If you wish to go to ZacksTrade, click OK. If you do not, click Cancel. Why Archer Daniels Midland (ADM) Outpaced the Stock Market Today Read MoreHide Full Article Archer Daniels Midland (ADM - Free Report) closed the most recent trading day at $62.45, moving +2.31% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.37%. On the other hand, the Dow registered a loss of 0.14%, and the technology-centric Nasdaq increased by 0.71%. Shares of the agribusiness giant have depreciated by 3.02% over the course of the past month, outperforming the Consumer Staples sector's loss of 3.28%, and lagging the S&P 500's gain of 4.26%. The investment community will be paying close attention to the earnings performance of Archer Daniels Midland in its upcoming release. The company's earnings per share (EPS) are projected to be $0.87, reflecting a 20.18% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $20.17 billion, showing a 1.18% escalation compared to the year-ago quarter. ADM's full-year Zacks Consensus Estimates are calling for earnings of $3.99 per share and revenue of $83.75 billion. These results would represent year-over-year changes of -15.82% and -2.09%, respectively. 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 such, positive estimate revisions reflect analyst optimism about the business and profitability. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Archer Daniels Midland boasts a Zacks Rank of 3 (Hold). Looking at its valuation, Archer Daniels Midland is holding a Forward P/E ratio of 15.28. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 15.28. It is also worth noting that ADM currently has a PEG ratio of 3.25. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Agriculture - Operations industry stood at 1.77 at the close of the market yesterday. The Agriculture - Operations industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 150, placing it within the bottom 40% of over 250 industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Image: Bigstock Why Archer Daniels Midland (ADM) Outpaced the Stock Market Today Archer Daniels Midland (ADM - Free Report) closed the most recent trading day at $62.45, moving +2.31% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.37%. On the other hand, the Dow registered a loss of 0.14%, and the technology-centric Nasdaq increased by 0.71%. Shares of the agribusiness giant have depreciated by 3.02% over the course of the past month, outperforming the Consumer Staples sector's loss of 3.28%, and lagging the S&P 500's gain of 4.26%. The investment community will be paying close attention to the earnings performance of Archer Daniels Midland in its upcoming release. The company's earnings per share (EPS) are projected to be $0.87, reflecting a 20.18% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $20.17 billion, showing a 1.18% escalation compared to the year-ago quarter. ADM's full-year Zacks Consensus Estimates are calling for earnings of $3.99 per share and revenue of $83.75 billion. These results would represent year-over-year changes of -15.82% and -2.09%, respectively. 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 such, positive estimate revisions reflect analyst optimism about the business and profitability. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Archer Daniels Midland boasts a Zacks Rank of 3 (Hold). Looking at its valuation, Archer Daniels Midland is holding a Forward P/E ratio of 15.28. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 15.28. It is also worth noting that ADM currently has a PEG ratio of 3.25. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Agriculture - Operations industry stood at 1.77 at the close of the market yesterday. The Agriculture - Operations industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 150, placing it within the bottom 40% of over 250 industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Archer Daniels Midland (ADM) demonstrated strong daily performance, closing up +2.31% and significantly outpacing the S&P 500's +0.37% gain on the most recent trading day. However, its monthly return of -3.02% lagged the S&P 500's +4.26% over the same period, though it did slightly outperform its Consumer Staples sector. The company faces a challenging outlook, with Q1 EPS projected at $0.87, representing a 20.18% year-over-year decrease, despite an anticipated 1.18% revenue escalation to $20.17 billion. Full-year estimates also reflect declines, with EPS forecast at $3.99 (-15.82% YoY) and revenue at $83.75 billion (-2.09% YoY). Valuation metrics present a mixed picture; ADM's Forward P/E of 15.28 is in line with its industry average. However, its PEG ratio of 3.25 significantly exceeds the Agriculture - Operations industry average of 1.77, implying that the stock might be overvalued relative to its projected earnings growth. The Zacks Consensus EPS estimate has remained stagnant over the past month, contributing to ADM's current Zacks Rank of 3 (Hold), indicating neutral analyst sentiment. The broader Agriculture - Operations industry currently holds a Zacks Industry Rank of 150, placing it in the bottom 40% of all industries. This weak industry positioning suggests systemic challenges, as historically, top-ranked industries significantly outperform bottom-half industries. Investors should consider these industry-specific headwinds which could limit ADM's potential despite any individual company strengths.
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