Archer-Daniels-Midland Company (ADM), based in Chicago, Illinois, is a global powerhouse in nutrition, agricultural processing, and sustainable solutions. With a market capitalization of $23 billion, ADM plays a critical role in converting crops into high-value products that serve industries ranging from food and beverage to animal nutrition, bioenergy, and industrial applications.
Companies with a market value of $10 billion or more are classified as “large-cap stocks,” Archer-Daniels-Midland fits this category. Leveraging its vast global supply chain and advanced processing capabilities, ADM is at the forefront of innovating plant-based ingredients, sustainable fuels, and next-generation nutrition solutions, driving both economic and environmental progress.
Archer-Daniels-Midland has struggled in recent months, now trading 33.3% below its 52-week high of $66.08, reached on July 18. The stock has also declined 4.4% over the past three months, aligning with the broader S&P 500 Index ($SPX), which saw an identical fall during the same period.
However, ADM’s longer-term performance has been notably weaker, with a 21.2% drop over six months, significantly underperforming the SPX, which saw only a marginal dip. Over the past year, ADM has declined 21.1%, in sharp contrast to SPX’s 9% gain.
ADM has stayed below its 200-day moving average for the past year and recently struggled to hold above its 50-day moving average, reinforcing its bearish trend.
ADM has lagged behind the broader market over the past year, weighed down by a federal investigation stemming from last year’s accounting scandal, escalating trade tensions, and uncertainty surrounding U.S. biofuels policy, which could pressure margins in oilseed crushing and biodiesel production. In response, the company is cutting up to 700 jobs and targeting $750 million in cost reductions over the next few years to navigate the commodity downturn and regulatory headwinds.
On March 10, ADM gained over 2% as defensive food and beverage stocks rallied amid broader market weakness.
However, on Feb. 4, ADM shares dwindled more than 5% after releasing its fourth-quarter and fiscal 2024 earnings. The company reported its weakest Q4 profit in six years and expects a third consecutive annual earnings decline in 2025. The company's adjusted EPS for Q4 2024 stood at $1.14, contributing to a full-year adjusted EPS of $4.74.
ADM has trailed its competitor, Tyson Foods, Inc. (TSN), which posted a decline of 2.1% over the past six months but surged 7.9% over the past year.
Analysts remain cautious on ADM, with a consensus “Hold” rating from 11 analysts. It has a mean price target of $49.70, suggesting a potential upside of 4.2% from its current price.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
