61.8 F
New York
Wednesday, October 21, 2020

Archer-Daniels-Midland Company (NYSE:ADM) is Waving the Bear Flag

Must read

PPG Industries Inc. (NYSE:PPG) Recent Earnings Shows Major Concern

PPG Industries Inc. (PPG) shares are trading at lower $134.32 and the avg recommendation for the stock is Moderate Buy, while the current analyst...

Inuvo Inc. (AMEX:INUV) Stock is Soaring, Here is Why

Inuvo Inc. (INUV) shares are trading at higher $0.37 and the avg recommendation for the stock is Moderate Buy. To add more color to...

The Rejuvenation of Syndax Pharmaceuticals Inc. (NASDAQ:SNDX)

Syndax Pharmaceuticals Inc. (SNDX) shares are trading at lower $17.28 and the avg recommendation for the stock is Strong Buy, while the current analyst...

Renewed Optimism is Surrounding ZoomInfo Technologies Inc. (NASDAQ:ZI)

ZoomInfo Technologies Inc. (ZI) shares are trading at higher $44.16 and the avg recommendation for the stock is Moderate Buy, while the current analyst...

Archer-Daniels-Midland Company (ADM) shares are trading at lower $48.83 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $49.56.

To add more color to this target, the company’s high over the last year is $50.03 and the low is $28.92. Over the last 52 weeks, ADM is up 21.47% while the S&P 500 is up 18.31%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, ADM reported a profit of $1.11 billion. Archer-Daniels-Midland Company also saw revenues increase to $16.28 billion. In addition, ADM has free cash flow of -$796.0 million as of 06-2020. The company’s EBITDA came in at $714.0 million which compares well with its peers.

ADM booked profit margins of 2.80%, its Return on Equity (ROE) is 9.30%, and its Return on Assets is 4.00%. All told, it is clear that, ADM needs to be on your watchlist.

Find out when ADM reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.

Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. ADM has a short ratio of 3.73 and outstanding shares of 561.00M.

Company Outlook

ADM has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 2.68 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 3.22. Archer-Daniels-Midland Company ADM also noted assets of $44.34 billion at the end of the last quarter. Investors should also keep an eye on sector updates as ADM has historically followed its peers on positive news.

All told, Archer-Daniels-Midland Company ADM has strung together solid data and demonstrated underlying fundamentals. At its current valuation, ADM represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Archer-Daniels-Midland Company ADM is now commanding a market cap of 27.07B and a float of 553.26M. ADM is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of ADM stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in ADM, either long or short, and we have not been compensated for this article.

Latest article

Is Now the Time to Invest in SITE Centers Corp. (NYSE:SITC)?

SITE Centers Corp. (SITC) shares are trading at lower $7.19 and the avg recommendation for the stock is Moderate Buy, while the current analyst...

Anheuser-Busch InBev SA/NV (NYSE:BUD) Stock is Soaring, Here is Why

Anheuser-Busch InBev SA/NV (BUD) shares are trading at higher $55.53 and the avg recommendation for the stock is Strong Buy, while the current analyst...

Manulife Financial Corporation (NYSE:MFC) is Holding Steady

Manulife Financial Corporation (MFC) shares are trading at lower $14.02 and the avg recommendation for the stock is Strong Buy, while the current analyst...

Investor Confidence is Falling for Paychex Inc. (NASDAQ:PAYX)

Paychex Inc. (PAYX) shares are trading at lower $81.93 and the avg recommendation for the stock is Moderate Buy, while the current analyst price...

Splunk Inc. (NASDAQ:SPLK) is Gaining Momentum on Earnings Catalyst

Splunk Inc. (SPLK) shares are trading at higher $207.21 and the avg recommendation for the stock is Moderate Buy, while the current analyst price...