4-Star Stocks Poised to Pop: Archer Daniels Midland

Before you go, we thought you'd like these...
Before you go close icon

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 (NYS: 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. (1902)

Market Cap

$17.4 billion

Industry

Agricultural products

Trailing-12-Month Revenue

$89.0 billion

Management

Chairman/CEO Patricia Woertz
CFO Ray Young

Return on Equity (average, past 3 years)

10.8%

Cash/Debt

$1.3 billion / $10.3 billion

Dividend Yield

2.7%

Competitors

Bunge
Cargill
ConAgra Foods


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

On CAPS, 94% of the 2,068 members who have rated ADM believe the stock will outperform the S&P 500 going forward.   

Earlier this month, one of those Fools, All-Star JPresbrown, tapped ADM as a particularly timely bargain opportunity:

Great long-term growth stock currently beaten down by drought-related price swings in corn prices. ... PEG ratio of 1.3 and is actually trading below book value. Has a 36 year record of dividend increases and a payout ratio of just 35%. ... Short-term there may be more volatility but its probably a good stock to tuck away for the long haul.

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, ADM may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," 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.

The article 4-Star Stocks Poised to Pop: Archer Daniels Midland originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 daysWe 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners