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Has Archer Daniels Midland (ADM) Outpaced Other Consumer Staples Stocks This Year?

Zacks Equity Research
·2-min read

For those looking to find strong Consumer Staples stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Archer Daniels Midland (ADM) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Staples sector should help us answer this question.

Archer Daniels Midland is one of 199 individual stocks in the Consumer Staples sector. Collectively, these companies sit at #11 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Archer Daniels Midland is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for ADM's full-year earnings has moved 7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

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Our latest available data shows that ADM has returned about 27.8% since the start of the calendar year. At the same time, Consumer Staples stocks have lost an average of 1.3%. As we can see, Archer Daniels Midland is performing better than its sector in the calendar year.

One other Consumer Staples stock that has outperformed the sector so far this year is Grocery Outlet Holding Corp. (GO). The stock is up 45.9% year-to-date.

Over the past three months, Grocery Outlet Holding Corp.'s consensus EPS estimate for the current year has increased 1.5%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Archer Daniels Midland is a member of the Agriculture - Operations industry, which includes 14 individual companies and currently sits at #87 in the Zacks Industry Rank. This group has gained an average of 24.6% so far this year, so ADM is performing better in this area.

Grocery Outlet Holding Corp. however, belongs to the Consumer Products - Staples industry. Currently, this 30-stock industry is ranked #169. The industry has moved -17.2% so far this year.

Going forward, investors interested in Consumer Staples stocks should continue to pay close attention to Archer Daniels Midland and Grocery Outlet Holding Corp. as they could maintain their solid performance.


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