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The Zacks Consumer Staples sector has fared better than most in 2022, down roughly 7% and widely outperforming the general market.
Companies in the sector have the advantageous ability to generate revenue in the face of many economic situations, helping explain why it’s been a brighter spot in an otherwise dim market.
A widely-recognized company residing in the realm, Archer Daniels Midland (ADM - Free Report) , has seen its near-term earnings outlook turn visibly bright over the last several months, helping to land the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Archer Daniels Midland is a leading producer of food and beverage ingredients and goods made from various agricultural products.
Let’s take a deeper dive into how the company currently stacks up.
Share Performance
Year-to-date, ADM shares have been visibly strong, tacking on more than 40% in value and leaving the S&P 500 in the dust.
Image Source: Zacks Investment Research
Over the last month, shares have continued on their market-beating trajectory, up a double-digit 11% and again outperforming the S&P 500.
The strong price action of ADM shares in 2022 indicates that buyers have been present all year long, something we can’t say for the majority of stocks in 2022.
Valuation
Shares are reasonably priced, further bolstered by its Style Score of an A for Value.
ADM shares trade at a 12.9X forward earnings multiple, nicely beneath the 14.2X five-year median and reflecting a 35% discount relative to its Zacks sector average.
Image Source: Zacks Investment Research
Quarterly Performance
ADM has been on an impressive earnings streak, exceeding both revenue and earnings estimates in eight consecutive quarters.
Just in its latest print, Archer Daniels Midland penciled in a sizable 31% bottom-line beat paired with a 7.8% sales surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Dividends
Investors love dividends. After all, who doesn’t enjoy getting paid?
ADM’s annual dividend yield currently sits at 1.7%, lower than that of its Zacks sector. Still, the company’s 4.1% five-year annualized dividend growth rate helps to pick up the slack in a big way.
Further, ADM has a sustainable payout ratio of 22% of its earnings.
Image Source: Zacks Investment Research
Bottom Line
One of the best ways investors can find expected winners is by utilizing the Zacks Rank – one of the most potent market tools out there that gives investors a massive advantage.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Archer Daniels Midland (ADM - Free Report) would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
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Bull of the Day: Archer Daniels Midland (ADM)
The Zacks Consumer Staples sector has fared better than most in 2022, down roughly 7% and widely outperforming the general market.
Companies in the sector have the advantageous ability to generate revenue in the face of many economic situations, helping explain why it’s been a brighter spot in an otherwise dim market.
A widely-recognized company residing in the realm, Archer Daniels Midland (ADM - Free Report) , has seen its near-term earnings outlook turn visibly bright over the last several months, helping to land the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Archer Daniels Midland is a leading producer of food and beverage ingredients and goods made from various agricultural products.
Let’s take a deeper dive into how the company currently stacks up.
Share Performance
Year-to-date, ADM shares have been visibly strong, tacking on more than 40% in value and leaving the S&P 500 in the dust.
Image Source: Zacks Investment Research
Over the last month, shares have continued on their market-beating trajectory, up a double-digit 11% and again outperforming the S&P 500.
The strong price action of ADM shares in 2022 indicates that buyers have been present all year long, something we can’t say for the majority of stocks in 2022.
Valuation
Shares are reasonably priced, further bolstered by its Style Score of an A for Value.
ADM shares trade at a 12.9X forward earnings multiple, nicely beneath the 14.2X five-year median and reflecting a 35% discount relative to its Zacks sector average.
Quarterly Performance
ADM has been on an impressive earnings streak, exceeding both revenue and earnings estimates in eight consecutive quarters.
Just in its latest print, Archer Daniels Midland penciled in a sizable 31% bottom-line beat paired with a 7.8% sales surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Dividends
Investors love dividends. After all, who doesn’t enjoy getting paid?
ADM’s annual dividend yield currently sits at 1.7%, lower than that of its Zacks sector. Still, the company’s 4.1% five-year annualized dividend growth rate helps to pick up the slack in a big way.
Further, ADM has a sustainable payout ratio of 22% of its earnings.
Image Source: Zacks Investment Research
Bottom Line
One of the best ways investors can find expected winners is by utilizing the Zacks Rank – one of the most potent market tools out there that gives investors a massive advantage.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Archer Daniels Midland (ADM - Free Report) would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).