Why ADM is Poised to Outperform

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, agribusiness giant Archer Daniels Midland (NYSE: ADM  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at ADM, and see what CAPS investors are saying about the stock right now.

ADM facts



Headquarters (founded)

Decatur, Ill. (1898)

Market Cap

$17.4 billion


Agricultural products

Trailing-12-Month Revenue

$88.9 billion


Chairman/CEO Patricia Woertz

CFO Ray Young

Return on Equity (average, past 3 years)



$1.7 billion / $10.5 billion

Dividend Yield



Bunge (NYSE: BG  )


Ingredion (NYSE: INGR  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 2,071 members who have rated ADM believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those bulls, JohnCLeven, tapped ADM as a particularly solid bargain opportunity:

Well diversified agriculture business selling at tangible book value. ... Earnings recently dropped off a cliff to a 7 yr low and ADM is selling at 14x those low earnings, but only 8.5x 2011 earnings and 9x 2010 earnings. I hope to see those earnings revert closer to the mean in the next 1-3 years and this volatile yet cheap stock ... should grow with it. Head I win, tails I don't lose much?

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a perfect five-star rating, ADM may not be your top choice.

If that's the case, we've compiled a special free report for investors called, "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

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Related Tickers

5/26/2016 4:00 PM
ADM $43.07 Up +0.59 +1.39%
Archer Daniels Mid… CAPS Rating: ****
BG $65.90 Up +0.38 +0.58%
Bunge Limited CAPS Rating: ***
INGR $119.05 Up +0.75 +0.63%
Ingredion CAPS Rating: ***