Why ADM is Poised to Outperform

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

Industry

Agricultural products

Trailing-12-Month Revenue

$88.9 billion

Management

Chairman/CEO Patricia Woertz

CFO Ray Young

Return on Equity (average, past 3 years)

9.9%

Cash/Debt

$1.7 billion / $10.5 billion

Dividend Yield

2.6%

Competitors

Bunge (NYSE: BG  )

Cargill

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.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


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