Latest news with #Archer-Daniels-MidlandCompany
Yahoo
21-05-2025
- Business
- Yahoo
UBS Upgrades Archer Daniels (ADM) Stock to Buy, Lifts PT
On May 19, UBS analyst Manav Gupta upped Archer-Daniels-Midland Company (NYSE:ADM)'s stock from 'Neutral' to 'Buy,' raising the price objective to $60 from the prior target of $55. The analyst highlighted the potential policy benefits, together with an optimistic outlook for its nutrition segment, as critical drivers. The House's budget reconciliation bill has made it clear that no production tax credit would be given to renewable diesel, which is made from imported feedstocks, says the firm's analyst. Aerial view of a vibrant wheat field, a representation of the fertilizers and crop nutrients this company provides. Furthermore, the analyst anticipates that Agricultural (AG) services earnings for Archer-Daniels-Midland Company (NYSE:ADM) will start to increase in H2 2025. Archer-Daniels-Midland Company (NYSE:ADM) procures, transports, stores, processes, and merchandises agricultural commodities, ingredients, flavors, and solutions. As per the analyst, the animal nutrition segment continues to demonstrate recovery signs, and together with further cost reductions, improvements in the human nutrition segment are projected. While we acknowledge the potential of ADM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ADM and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and 11 Unstoppable Growth Stocks to Invest in Now. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-05-2025
- Business
- Yahoo
Archer-Daniels-Midland Company (ADM): One of the Undervalued Dividend Aristocrats to Buy Now
We recently published a list of the . In this article, we are going to take a look at where Archer-Daniels-Midland Company (NYSE:ADM) stands against other undervalued dividend aristocrats. Dividend-paying stocks are regaining popularity this year as investors look for ways to soften the blow of current market challenges. The S&P Dividend Aristocrats Index, which tracks the performance of companies with at least 25 consecutive years of dividend growth, has fallen by a little over 1.2% since the start of 2025, compared with a 4.1% decline of the broader market. Analysts point out that dividends not only help boost overall returns early on, but there's also clear evidence that companies with growing dividends tend to deliver stronger performance. These stocks often provide better returns with less risk, stay ahead of inflation, and hold up well whether interest rates are climbing or falling. According to S&P Indices' 'Research Insights,' dividends have accounted for roughly a third of total returns since 1926. This is largely because, unlike stock prices that can fluctuate, dividends represent a guaranteed gain once paid out. Even in strong bull markets like the 1950s, 1980s, and 1990s, dividends played a meaningful role in enhancing investor returns. However, their true value becomes especially clear in weaker market cycles, when capital gains are modest or even negative, dividends have often made up more than half of the total return. In some cases, they've been the deciding factor in keeping returns positive. In essence, dividends tend to matter most when market performance falls short. A report from Fenimore Asset Management reveals that between 1972 and 2016, companies that either raised or initiated dividends consistently outperformed those that did not. Historically, a dividend hike has often been viewed as a sign that management is confident in the company's future. This concept is even the basis of the 'Dividend Discount Model,' which values a company based on expected dividend growth. On average, firms that grew or introduced dividends delivered annualized returns of 9.8%, outpacing businesses that didn't pay dividends. These companies typically enjoy rising sales and earnings, generating more cash than they need for reinvestment, allowing them to reward shareholders regularly. This pattern also reflects a strong commitment by management and the board to return value to investors. In contrast, companies that cut or eliminate dividends often struggle financially. These underperformers posted annualized returns of -0.6% during the said period, and such reductions usually point to a weakening business, limited growth prospects, or a need to redirect cash toward internal needs rather than shareholder payouts. The report also highlighted that one of the key advantages of a growing dividend is its ability to preserve purchasing power over time. As inflation gradually pushes up the cost of living, dividend income needs to grow just to keep up. Assuming a long-term inflation rate of 2%, dividends must increase by at least that much to avoid losing value in real terms. While investors seeking income may be drawn to stocks with high current yields, it's just as important to consider how fast those dividends are growing. Focusing solely on yield without looking at growth can be short-sighted. In the long run, companies that steadily raise their dividends provide income that keeps pace with or even exceeds inflation, offering greater financial security. A wheat field at sunset, showing the company's commitment to agricultural commodities. For this list, we scanned the list of the S&P Dividend Aristocrats– the stocks that have raised their payouts for 25 years or more– and identified stocks with low forward P/E ratios. From there, we picked 11 dividend aristocrats with forward P/E ratios below 20, as of May 7, and ranked them accordingly. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Forward P/E Ratio as of May 7: 11.21 Archer-Daniels-Midland Company (NYSE:ADM) is an American company that is involved in food processing and commodity trading. The company is carrying out a strategic initiative to enhance profitability and aims to generate $200–$300 million in cost savings over the coming years by streamlining operations and reducing its workforce. These efforts are intended to improve margins and reinforce financial stability in the face of ongoing economic challenges. In addition, ADM is leveraging technologies such as AI, data analytics, and SAP S/4HANA to boost supply chain efficiency, enhance demand forecasting, and sharpen pricing strategies—moves that are expected to support its competitive edge. Archer-Daniels-Midland Company (NYSE:ADM) reported mixed earnings in the first quarter of 2025. The company posted revenue of $20.1 billion, which not only fell by 7.6% on a YoY basis but also missed analysts' estimates by $1.8 billion. However, the EPS of $0.70 beat consensus by $0.03. Total segment operating profit amounted to $747 million, reflecting a 38% decline compared to the same quarter last year. This figure excludes $49 million in specified items, which were mainly related to restructuring expenses. Archer-Daniels-Midland Company (NYSE:ADM) ended the quarter with $864 million available in cash and cash equivalents. On May 7, the company declared a quarterly dividend of $0.51 per share, which fell in line with its previous dividend. Overall, it holds a 52-year streak of dividend growth, which makes ADM one of the best dividend aristocrat stocks to consider. The stock supports a dividend yield of 4.28%, as of May 7. Overall, ADM ranks 2nd on our list of the best undervalued dividend aristocrats to buy now. While we acknowledge the potential of ADM as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than ADM but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at .
Yahoo
09-04-2025
- Business
- Yahoo
Is Archer-Daniels-Midland Company (ADM) the Best Farmland and Agriculture Stock to Buy Now?
We recently published a list of . In this article, we are going to take a look at where Archer-Daniels-Midland Company (NYSE:ADM) stands against other best farmland and agriculture stocks to buy now. At the beginning of March, the White House announced the imposition of 25% tariffs on goods from Mexico and Canada and additional 10% tariffs on China. While President Trump granted a one-month tariff delay for automakers and paused the same for certain Mexican and Canadian goods until April 2, he announced in an interview with Fox News that tariffs 'could go up' with time. Since tariffs on Chinese goods weren't a part of the exemptions, China imposed retaliatory tariffs on the US, particularly targeting US agricultural goods. Specifically, a 10% tariff was imposed on American soybeans, while corn was hit with an additional 15% charge. CNBC reported that China is prepared to fight 'any type of war' with the United States. The news channel reported that the Chinese Embassy in the US reported in a post on X: 'If war is what the U.S. wants, be it a tariff war, a trade war, or any other type of war, we're ready to fight till the end.' A Chinese foreign ministry spokesperson also labeled the American fentanyl-related explanation for imposing tariffs a 'flimsy excuse.' READ ALSO: and . On March 4, Landus Cooperative CEO, Matt Carstens, appeared on CNBC's 'The Exchange' to talk about how tariffs could potentially slash the prices of various agricultural products and discuss the long-term benefits of these tariffs on agricultural markets. He said that a significant need to find markets exists for American farmers. Corn makes up about 20% of any given year that the US exports to other countries, while soybean reaches up to as much as 50% of America's production going to other markets. This creates an interesting dynamic that puts considerable pressure on the ongoing circumstances. Carstens was of the view that the American farmers hopefully understand that the government is playing the long game here and working on something that would hopefully be significantly profitable for America in the long run. That translates to opportunities for farmers to get the most for commodities, something that they need to a great extent at the present. However, in the short term, we have to deal with these changes in the market. In other words, Carstens said that the scenario could benefit consumers because the US is flooded with the said agricultural product. Since it is comparatively more expensive to export these products, American consumers get cheaper soybeans and corn, but the farmers potentially lose their export business. There is, thus, a balance that comes into play. The market will certainly see price decreases as export slows and supply increases. However, the farmers are dealing with prices that continue to escalate amid other costs. We sifted through stock screeners, financial media reports, and ETFs to compile a list of 30 farmland and agriculture stocks and chose the top 14 most popular stocks among hedge funds. The list is ordered in ascending order of the number of hedge funds as of fiscal Q4 2024. We sourced the hedge fund sentiment data from Insider Monkey's database. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A wheat field at sunset, showing the company's commitment to agricultural commodities. Number of Hedge Fund Holders: 38 Archer-Daniels-Midland Company (NYSE:ADM) is a human and animal nutrition company that serves as an agricultural processor and supply chain manager. It operates through the Carbohydrate Solutions, Nutrition, and Ag Services and Oilseeds segments. The company is focusing on enhancing its operating efficiency, especially in its fertilizer business. It is investing in digitization and automation initiatives to boost its production, enhance product quality, and slash costs. Archer-Daniels-Midland Company (NYSE:ADM) is focusing on a strategic plan to boost its profitability, targeting around $200 to $300 million in cost savings over the coming few years primarily through workforce reductions and operational efficiencies. The company has plans to bolster its financial positions amidst economic fluctuations and improve its margins. Archer-Daniels-Midland Company (NYSE:ADM) is also employing data analytics, AI, and SAP S/4HANA to augment pricing strategies, improve demand forecasting, optimize its supply chain, and maintain its competitive edge. A primary growth driver for the company is its expansion into plant-based and nutritional products within the Nutrition segment. This high-margin business significantly slashes dependence on otherwise volatile commodity markets, positioning Archer-Daniels-Midland Company (NYSE:ADM) for long-term growth and strong cash flow generation. Overall, ADM ranks 6th on our list of best farmland and agriculture stocks to buy now. While we acknowledge the potential for ADM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ADM but trades at less than 5 times its earnings, check out our report about the . READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
Yahoo
07-04-2025
- Business
- Yahoo
Is Archer-Daniels-Midland (ADM) the Best Ethanol Stock to Buy According to Hedge Funds?
We recently published a list of . In this article, we are going to take a look at where Archer-Daniels-Midland Company (NYSE:ADM) stands against other best ethanol stocks to buy according to hedge funds. Ethanol stocks are from companies that manufacture, sell, or distribute ethanol, a biofuel derived from crops such as corn and sugarcane. The ethanol industry is booming. As per Precedence Research, the global fuel ethanol market stood at $106.20 billion in 2024, climbed to $111.64 billion in 2025, and is anticipated to exceed $174.98 billion by 2034, representing a 5.12% CAGR between 2024 and 2034. The North American ethanol market is estimated to be worth $60.53 billion in 2024, growing at a CAGR of 5.20% over the forecast period. Overall, the United States is the world's leading producer and exporter of fuel ethanol, and prices in the country stayed relatively low in 2024. Moreover, Brazil is the second-largest producer and exporter. Growth Energy, the nation's largest biofuel trade association, released data revealing that ethanol exports from the US set a new high in 2024. In total, the country exported 1.9 billion gallons of ethanol valued at $4.3 billion in 2024, breaking the previous record for volume set in 2018 and the prior record for value established in 2023. Growth Energy CEO Emily Skor commented: 'The numbers don't lie. The world is looking to the U.S. to meet its fuel needs and American producers are delivering in a way that supports economic growth abroad and at home in rural communities across the country,' 'As the new Administration puts its new trade priorities into action, we look forward to working with President Trump and his team to ensure that we build on this momentum in a way that continues to grow the American farm economy through sales of American ethanol abroad.' Recently, the U.S. Energy Information Administration reported on April 2 that the output of fuel ethanol in the US rose by 1% in the week ending March 28. Stocks of fuel ethanol were down 3%, whereas exports dropped 62%. Most importantly, the export market remains the most attractive opportunity for driving US ethanol demand in 2025. Looking ahead, according to Jacqui Fatka, a farm supply and biofuels economist at CoBank, ethanol usage in higher-level blends is anticipated to surge annually in the US, but it accounts for just a tiny fraction of total ethanol demand due to the market's size. Therefore, without large expenditures in infrastructure that allow retailers to adjust pumps or signage, nationwide E15 sales will not significantly increase in the time to come. Currently, the export market represents the best possibility to boost demand in 2025. According to the United States Department of Agriculture's most recent quarterly trade projection, announced on February 27, ethanol export volumes in the US would hit a record 1.85 billion gallons in the fiscal year 2025. The forecast is slightly higher than the previous quarter's outlook. We sifted through online rankings to form an initial list of 20 Ethanol stocks. From the resultant dataset, we chose the top 12 stocks most favored by hedge funds, using Insider Monkey's database of 1,009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. We have used the stock's Market Cap as of April 3, 2025, as a tie-breaker in case two or more stocks have the same number of hedge funds invested. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A wheat field at sunset, showing the company's commitment to agricultural commodities. Number of Hedge Fund Investors: 38 Market Cap as of April 3, 2025: $23.01 billion Archer-Daniels-Midland Company (NYSE:ADM) is a leading processor of oilseeds, corn, wheat, and other agricultural products. The company's vast network of logistical assets allows it to store and ship grains all over the world, making it one of the biggest grain merchandisers. The firm also operates a nutrition company that specializes in both human and animal ingredients and is a major manufacturer of ethanol, starches, and sweeteners made from corn, which makes it among the Best Ethanol Stocks. Before selling the crops to consumers of food, feed, and energy, the company buys them from farmers and then transports, stores, and/or processes them. Archer-Daniels-Midland Company (NYSE:ADM)'s profit margins are narrow since its competitors' commodity products are easily accessible, and it has little control over the prices of the products it purchases and sells. Furthermore, the firm finds it challenging, though not impossible, to turn a profit due to the capital intensity of its operations. Archer-Daniels-Midland Company (NYSE:ADM) reported Q4 2024 adjusted EPS of $1.14 and full-year adjusted EPS of $4.74, in line with expectations. In the fourth quarter, the total segment operating profit was $1.1 billion, and for the entire year, it was $4.2 billion. The company effectively ramped up the Spiritwood facility, strengthened North American operations, and elevated crush volumes in canola and rapeseed. Production output increased by 3% year over year due to strong plant performance, and multiple North American product lines saw record operating profits. Along with developing biosolutions and health and wellness innovations, the business further improved its safety record by cutting process safety incidents by more than 35%. A quarterly dividend increase was also announced by the company, which has now paid dividends for 93 years in a row. Overall, ADM ranks 3rd on our list of best ethanol stocks to buy according to hedge funds. While we acknowledge the potential of ethanol companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ADM but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
28-03-2025
- Business
- Yahoo
Is Archer-Daniels-Midland (ADM) The Top High Dividend Yielding Consumer Defensive Stock To Buy?
We recently published a list of . In this article, we are going to take a look at where Archer-Daniels-Midland Company (NYSE:ADM) stands against other top high dividend yielding consumer defensive stocks to buy. Consumer defensive stocks tend to perform well in uncertain times because they sell essential items such as household products, healthcare items, and food and beverages, among others. Such companies also tend to have a strong pricing power which helps them to easily pass on increasing costs to consumers. The US market continues to struggle due to concerns over tariffs, geopolitical issues, and politics. In such times, consumer defensive stocks offer a way to protect one's portfolio from this uncertainty. When such shares also offer a high dividend yield, it performs a killer combination, loved by defensive investors looking to park their money for reliable passive income. We therefore decided to come up with a list of the top 10 high-dividend-yielding consumer defensive stocks. To come up with the list of top 10 high-dividend consumer defensive stocks, we only considered stocks from the consumer defensive sector with a market cap of at least $10 billion and a dividend yield of at least 4%. A wheat field at sunset, showing the company's commitment to agricultural commodities. Archer-Daniels-Midland Company (NYSE:ADM) processes, stores, procures, transports, and merchandises agricultural commodities, flavors, ingredients, and solutions. The company operates through Carbohydrate Solutions, Ag Services and Oilseeds, and Nutrition segments. It continues to draw investors' attention by offering a dividend yield of 4.43%. As a consistent dividend payer, the company has demonstrated its commitment to shareholder returns with an increasing and uninterrupted dividend payment for 53 consecutive years. Archer-Daniels-Midland Company (NYSE:ADM) announced its Q4 results last month, which were below analysts' estimates. Operating profits fell 32% YoY and cash flows from operations also decreased by 30%. The poor earnings came as a result of sector-wide instability, not company-specific issues. Based on the results, management expects 1st half of 2025 to be challenging with significantly reduced canola crush and soybean margin. According to ADM CFO Monish Patolawala, cost savings and efficiency improvements will help mitigate some of the market challenges the company is expected to face going forward. After losing a quarter of its share value in the last year, the stock is now at a level where people can buy a Dividend King with their eyes closed and come out on top. Overall, ADM ranks 7th on our list of top high dividend yielding consumer defensive stocks to buy. While we acknowledge the potential of ADM as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as ADM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
