If you're looking for stocks that are setting up in a base ahead of their next quarterly report, here's one that fits the bill: top-ranked Archer Daniels Midland. It plans to announce its latest quarterly results on Oct. 25 and is trading near a 92.36 buy point. The entry is based on a third-stage cup-with-handle base. Archer Daniels stock was down fractionally Tuesday.
Wall Street Expects 44% Profit Growth For Fiscal Q3
Earnings growth for the agricultural products maker picked up last quarter from 37% to a whopping 62%, to $2.15 per share. Archer Daniels revenue rose 19% year over year for the quarter, to $27.3 billion. That was down from 25% growth the prior quarter, though still a decent gain.
Analysts expect the company to report that earnings grew 44% for the quarter, year over year, when it reports fiscal third quarter results next week. The Street also is looking for a 33% gain in EPS for the full year.
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Archer Daniels Midland, often called simply ADM, was founded 120 years ago and is based in Chicago. It processes a wide variety of grains and seeds for use in various foods and as feed stock for animals. Globally, ADM operates 270 plants and 420 crop collection facilities.
Tops In Ag Group
Among its other ratings, Archer Daniels stock has an excellent 95 Composite Rating of 99, and holds the No. 1 rank among its peers in the Food-Grain & Related industry group. Ingredion and Andersons are also among the group's highest-rated stocks.
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Archer Daniels has a 96 EPS Rating, putting it among the top 4% of companies in terms of recent quarters and years profit growth. Its C- Accumulation/Distribution Rating is less than ideal but not surprising given the ongoing bear market. The A/D Rating gauges institutional investing in a stock by mutual funds, ETFs and other corporate level investors.
It's important to note that buying a stock just ahead of earnings involves risk because the investor typically doesn't have enough time to establish a profit cushion before the latest quarterly numbers come out. Especially in a turbulent market like this it's important to follow sound buy and sell rules to minimize exposure.
Note: Dates for earnings reports are subject to change. Check the company's website for any updates.
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