Archer-Daniels-Midland Company (ADM), headquartered in Chicago, Illinois, is a global leader in nutrition and agricultural processing. With a market cap of $23.8 billion, ADM transforms crops into essential products for diverse industries, including food and beverage, animal nutrition, industrial applications, and bioenergy.
Companies with a market value of $10 billion or more are classified as “large-cap stocks,” Archer-Daniels-Midland is a proud member of this category. With a strong focus on sustainability and innovation, ADM drives progress in food security, renewable resources, and bio-based solutions, ensuring its lasting impact across diverse markets and critical applications worldwide.
Archer-Daniels-Midland is sitting 33.3% below its 52-week high of $74.02, hit on Jan. 3. The stock has declined 20.9% over the past three months, lagging behind the VanEck Agribusiness ETF (MOO), which has dropped 11.1% over the same time frame.
Over the longer term, ADM has dropped 31.6% on a YTD basis, falling much more than MOO's 13% decrease. Over the past 52 weeks, ADM's 33.2% decline has been much steeper than MOO's 12% drop.
Since September, ADM has consistently stayed below its 50-day moving average and traded beneath the 200-day moving average over the past year, indicating a bearish trend.
On Nov. 18, Archer Daniels Midland reported its Q3 earnings, leading to a 1.2% decline in its stock price. Its adjusted EPS came in at $1.09, reflecting a 33% year-over-year increase and surpassing consensus estimates of $1.26. Adjusted revenue declined 8.1% annually to $19.94 billion but is still ahead of Wall Street’s expectation.
The company reaffirmed its full-year EPS guidance, projecting adjusted earnings per share between $4.50 and $5.00 for fiscal 2024. This outlook accounts for trends in the company’s performance so far, uncertainties in legislative and regulatory policies, and ongoing challenges from slower market demand and internal operational hurdles.
ADM has lagged behind its rival, FMC Corporation (FMC), which declined 24.1% on a YTD basis and 21.5% over the past year.
Analysts maintain a cautious outlook on its prospects, noting the stock's outperformance relative to the broader sector. ADM has a consensus rating of “Hold” from the 12 analysts covering the stock and has a mean price target of $56.55, suggesting a potential upside of 14.5% from its current price.
