U.S. Markets closed
  • S&P 500

    3,629.65
    -5.76 (-0.16%)
     
  • Dow 30

    29,872.47
    -173.77 (-0.58%)
     
  • Nasdaq

    12,094.40
    +57.62 (+0.48%)
     
  • Russell 2000

    1,845.02
    -8.51 (-0.46%)
     
  • Crude Oil

    45.15
    -0.56 (-1.23%)
     
  • Gold

    1,812.70
    +7.20 (+0.40%)
     
  • Silver

    23.50
    +0.05 (+0.23%)
     
  • EUR/USD

    1.1919
    0.0000 (-0.0000%)
     
  • 10-Yr Bond

    0.8780
    -0.0040 (-0.45%)
     
  • Vix

    21.25
    -0.39 (-1.80%)
     
  • GBP/USD

    1.3349
    -0.0034 (-0.2510%)
     
  • USD/JPY

    104.2800
    -0.1600 (-0.1532%)
     
  • BTC-USD

    17,293.36
    -685.81 (-3.81%)
     
  • CMC Crypto 200

    337.31
    -33.20 (-8.96%)
     
  • FTSE 100

    6,355.43
    -35.66 (-0.56%)
     
  • Nikkei 225

    26,537.31
    +240.45 (+0.91%)
     

Why Archer Daniels (ADM) is Such a Great Value Stock Pick Right Now

Zacks Equity Research

Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?

Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; Archer Daniels Midland Company (ADM).

Archer Daniels in Focus

ADM may be an interesting play thanks to its forward PE of 14, its P/S ratio of 0.3, and its decent dividend yield of 2.15%. These factors suggest that Archer Daniels is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that ADM has decent revenue metrics to back up its earnings.

But before you think that Archer Daniels is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 1.3% in the past 30 days, thanks to 1 upward revision in the past one month compared to no downward revision.

This estimate strength is actually enough to push ADM to a Zacks Rank #3 (Hold), suggesting it is poised to outperform. So really, Archer Daniels is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.

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 >>






ARCHER DANIELS MIDLAND CO (ADM): Free Stock Analysis Report


Zacks Investment Research