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4-Star Stocks Poised to Pop: Archer Daniels Midland

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Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, agribusiness giant Archer Daniels Midland (NYSE: ADM  ) has earned a respected four-star ranking.

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

ADM facts

Headquarters (Founded)

Decatur, Ill. (1898)

Market Cap

$19.8 billion

Industry

Agricultural products

Trailing-12-Month Revenue

$73.51 billion

Management

Chairman/CEO Patricia Woertz

CFO Ray Young

Return on Equity (Average, Past 3 Years)

13.1%

Cash/Debt

$1.62 billion / $14.26 billion

Dividend Yield

2.1%

Competitors

Bunge (NYSE: BG  )

Corn Products International (NYSE: CPO  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 94% of the 2,000 members who have rated ADM believe the stock will outperform the S&P 500 going forward. These bulls include All-Star IsleGirl2010, who is ranked in the top 2% of our community, and luckynumberseven.

Late last month , IsleGirl2010 tapped ADM as an essential selection: "A slice of agriculture for my portfolio and a taste of ethanol. Can't go wrong there -- people will always need both."

Currently, ADM even sports a cheapish forward P/E of 9.2. That represents a discount to industry peers like Bunge (11.2), Corn Products (11.2), and Cosan (NYSE: CZZ  ) (13.4).

CAPS member luckynumberseven elaborates on the ADM bull case:

Because people want to have a little something to fall back on with gas prices and inflation so uncertain, there will be a much larger push towards developing more ways we are not AS dependant on oil. [ADM] is the frontrunner in developing the ethanol market in the U.S. I suppose POET LLC would be a close candidate but they don't trade publicly.

What do you think about ADM, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!  

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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Brian Pacampara
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Related Tickers

12/22/2014 11:49 AM
ADM $52.58 Up +0.34 +0.65%
Archer Daniels Mid… CAPS Rating: ****
BG $91.95 Up +1.56 +1.73%
Bunge Limited CAPS Rating: ****
CZZ $7.32 Up +0.02 +0.27%
Cosan CAPS Rating: *****
INGR $85.25 Up +0.96 +1.14%
Ingredion CAPS Rating: *****

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