U.S. Markets close in 2 hrs 25 mins

Archer Daniels' Yerbalatina Buyout to Boost Natural Products

Zacks Equity Research

Archer Daniels Midland CompanyADM recently bought Yerbalatina Phytoactives, a Brazilian-based pioneering natural plant-based extracts maker. With this buyout, the company will be able to enhance its presence in Brazil, where it has an extensive human and animal nutrition business. Through this buyout, Archer Daniels will be able to serve customers with healthy and natural-source products in the foods and beverages space.

Notably, Yerbalatina uses proprietary cool-drying technology to transform fruits, vegetables and plants like acerola, acai, green coffee into a wide range of extracts. Moreover, it has a range of more than 100 botanical products and solutions, which include healthy ingredients as well as organic powdered fruits, food colorings, vegetable milks and nutritional extracts.

Furthermore, Archer Daniels is likely to benefit from Yerbalatina’s natural botanical extracts that comprise organic-certified ingredients, R&D competencies and expertise. This will reinforce the company’s leadership in science-based microbiome solutions for human and animal wellness.

We note that the global retail market for foods, beverages and supplements, highlighting health & wellness concepts, is flourishing and is anticipated to reach $750 billion. Impressively, the addition of Yerbalatina to the company’s portfolio is an important tool and will continue to leverage the power of nature to enrich human and animal health.

Meanwhile, Archer Daniels’ three strategic pillars — optimize, drive and growth — as well as Project Readiness initiative to drive overall growth bode well. The Readiness goals of improving business, standardizing functions and enriching consumers’ experience are on track.

The company’s strategic pillars, guided and supported by the Readiness program, are focused on accelerating and enhancing competitiveness. Management is optimistic about Archer Daniels’ leadership in key global trends like flexitarian diets, nutrition and sustainable materials. Moreover, the company is focused on investing in assets and technological capabilities to serve customers efficiently as well as boost growth.

Price Performance & Zacks Rank

Shares of the agricultural products company have gained 8% in the past six months compared with the industry’s rise of 5.4%.

Archer Daniels currently carries a Zacks Rank #3 (Hold).

Better-Ranked Consumer Staples Stocks

Lamb Weston Holdings, Inc LW has an expected long-term earnings growth rate of 7.9% and sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

General Mills, Inc GIS has an expected long-term earnings growth rate of 7% and carries a Zacks Rank #2 (Buy).

The Hain Celestial Group, Inc HAIN delivered a positive earnings surprise of 14.3% in the last reported quarter. It currently carries a Zacks Rank #2.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
The Hain Celestial Group, Inc. (HAIN) : Free Stock Analysis Report
 
Lamb Weston Holdings Inc. (LW) : Free Stock Analysis Report
 
General Mills, Inc. (GIS) : Free Stock Analysis Report
 
Archer Daniels Midland Company (ADM) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.