In the latest trading session, The Andersons (ANDE) closed at $56.26, marking a -0.35% move from the previous day. This move lagged the S&P 500’s daily gain of 1.61%. At the same time, the Dow added 1.45%, and the tech-heavy Nasdaq gained 0.05%.
Prior to today’s trading, shares of the agriculture company had gained 19.22% over the past month. This has outpaced the Basic Materials sector’s gain of 5.16% and the S&P 500’s loss of 1.42% in that time.
Investors will be hoping for strength from The Andersons as it approaches its next earnings release. In that report, analysts expect The Andersons to post earnings of $0.66 per share. This would mark year-over-year growth of 43.48%. Our most recent consensus estimate is calling for quarterly revenue of $2.82 billion, up 7.07% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.64 per share and revenue of $13.49 billion. These totals would mark changes of -10.2% and +6.27%, respectively, from last year.
Any recent changes to analyst estimates for The Andersons should also be noted by investors. 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 shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. The Andersons is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, The Andersons currently has a Forward P/E ratio of 21.43. This represents a premium compared to its industry’s average Forward P/E of 21.34.
The Agriculture – Products industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 15, which puts it in the top 6% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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