Back to top

Image: Bigstock

Are Consumer Staples Stocks Lagging Archer Daniels Midland (ADM) This Year?

Read MoreHide Full Article

The Consumer Staples group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Archer Daniels Midland (ADM - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Staples sector should help us answer this question.

Archer Daniels Midland is a member of the Consumer Staples sector. This group includes 199 individual stocks and currently holds a Zacks Sector Rank of #10. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Archer Daniels Midland is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for ADM's full-year earnings has moved 9.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, ADM has gained about 24.7% so far this year. In comparison, Consumer Staples companies have returned an average of 4%. This shows that Archer Daniels Midland is outperforming its peers so far this year.

Another stock in the Consumer Staples sector, Pilgrim's Pride (PPC - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 8.8%.

In Pilgrim's Pride's case, the consensus EPS estimate for the current year increased 27.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Archer Daniels Midland belongs to the Agriculture - Operations industry, a group that includes 14 individual companies and currently sits at #75 in the Zacks Industry Rank. Stocks in this group have gained about 18% so far this year, so ADM is performing better this group in terms of year-to-date returns.

On the other hand, Pilgrim's Pride belongs to the Food - Meat Products industry. This 5-stock industry is currently ranked #16. The industry has moved -3% year to date.

Investors with an interest in Consumer Staples stocks should continue to track Archer Daniels Midland and Pilgrim's Pride. These stocks will be looking to continue their solid performance.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Archer Daniels Midland Company (ADM) - free report >>

Pilgrim's Pride Corporation (PPC) - free report >>

Published in