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In an attempt to refine its pets business and progress on growth, Archer-Daniels-Midland Company (ADM - Free Report) inked a deal to buy Crosswind Industries Inc. The deal is expected to be concluded in the coming weeks. Given the growing significance of the global pet food market and Archer Daniels’ robust resources, we believe that this move will benefit the latter.
Well, Archer Daniels already has a strong presence in the pets’ space, evident from the fact that the company sells over 50 ingredients and products that are used by over 70% of all North American pet food companies. Hence, the buyout of Crosswind Industries will add another leaf to Archer Daniel’s global growth story.
Based in Kansas, Crosswind Industries is a manufacturer of dry-expanded, dual-texture, semi-dry and semi-moist treat items for pets. Further, the company is a leading name in the contract and private label pet treats and foods products space. With a solid workforce, Crosswind Industries operates five processing lines across five Kansas facilities. Additionally, the company possesses nine “ready for retail” packaging networks.
Clearly, Crosswind Industries’ superb network and product assortments will perfectly complement Archer Daniels’ Animal Nutrition business, alongside adding to its wide array of pet products. This, in turn is likely to enrich customers’ experience by offering them wider choices.
Archer Daniels has long been focused on expansion via mergers and acquisitions. With regard to its Animal Nutrition business, since 2015 the company has closed a number of domestic and international organic growth and improvement projects. Also, the buyout of Lyrco Nutrition’s and joint venture with Alliance Liquid Feeds reflect the company’s focus on solidifying this business, which has been gaining considerable traction.
Notably, the pet industry constitutes a market of roughly $60 billion, and remains poised to grow thanks to the solid pet ownership fashion and owners’ growing kindness toward them. We recently saw Tractor Supply Company (TSCO - Free Report) tapping this opportunity and fortifying its presence in the pet specialty space, by acquiring 100% stake in Petsense LLC – a leading specialty retailer of pet supplies and services.
Coming back to Archer Daniels, this Zacks Rank #1 (Strong Buy) company has substantially outperformed the broader consumer staples sector in the last six months, mainly driven by its focus and progress on such strategic initiatives. The company’s shares have jumped 30.2% in the last one year, substantially ahead of the Zacks categorized consumer staples sector that grew just 4.5% in the same time frame.
Calavo Growers has a favorable industry rank that ranks in the top 3% out of over 250 industries. Further, the company has seen positive estimate revisions in the last 30 days and has a solid earnings surprise history.
Adecoagro has a favorable industry rank that ranks in the top 3% out of over 250 industries. Further, the company has a value score of ‘B’ that makes it a good choice for value investors.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank.Be among the very first to see it>>
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Archer Daniels Buys Crosswind Industries, Boosts Growth
In an attempt to refine its pets business and progress on growth, Archer-Daniels-Midland Company (ADM - Free Report) inked a deal to buy Crosswind Industries Inc. The deal is expected to be concluded in the coming weeks. Given the growing significance of the global pet food market and Archer Daniels’ robust resources, we believe that this move will benefit the latter.
Well, Archer Daniels already has a strong presence in the pets’ space, evident from the fact that the company sells over 50 ingredients and products that are used by over 70% of all North American pet food companies. Hence, the buyout of Crosswind Industries will add another leaf to Archer Daniel’s global growth story.
Based in Kansas, Crosswind Industries is a manufacturer of dry-expanded, dual-texture, semi-dry and semi-moist treat items for pets. Further, the company is a leading name in the contract and private label pet treats and foods products space. With a solid workforce, Crosswind Industries operates five processing lines across five Kansas facilities. Additionally, the company possesses nine “ready for retail” packaging networks.
Clearly, Crosswind Industries’ superb network and product assortments will perfectly complement Archer Daniels’ Animal Nutrition business, alongside adding to its wide array of pet products. This, in turn is likely to enrich customers’ experience by offering them wider choices.
Archer Daniels has long been focused on expansion via mergers and acquisitions. With regard to its Animal Nutrition business, since 2015 the company has closed a number of domestic and international organic growth and improvement projects. Also, the buyout of Lyrco Nutrition’s and joint venture with Alliance Liquid Feeds reflect the company’s focus on solidifying this business, which has been gaining considerable traction.
Notably, the pet industry constitutes a market of roughly $60 billion, and remains poised to grow thanks to the solid pet ownership fashion and owners’ growing kindness toward them. We recently saw Tractor Supply Company (TSCO - Free Report) tapping this opportunity and fortifying its presence in the pet specialty space, by acquiring 100% stake in Petsense LLC – a leading specialty retailer of pet supplies and services.
Coming back to Archer Daniels, this Zacks Rank #1 (Strong Buy) company has substantially outperformed the broader consumer staples sector in the last six months, mainly driven by its focus and progress on such strategic initiatives. The company’s shares have jumped 30.2% in the last one year, substantially ahead of the Zacks categorized consumer staples sector that grew just 4.5% in the same time frame.
Other Stocks to Consider
Other well-ranked stocks worth considering in the same space include Calavo Growers, Inc. (CVGW - Free Report) with a Zacks Rank #1 and Adecoagro S.A. (AGRO - Free Report) with a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Calavo Growers has a favorable industry rank that ranks in the top 3% out of over 250 industries. Further, the company has seen positive estimate revisions in the last 30 days and has a solid earnings surprise history.
Adecoagro has a favorable industry rank that ranks in the top 3% out of over 250 industries. Further, the company has a value score of ‘B’ that makes it a good choice for value investors.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank.Be among the very first to see it>>