Archer-Daniels Midland Company (ADM): Today's Featured Consumer Goods Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Archer-Daniels Midland Company ( ADM) pushed the Consumer Goods sector higher today making it today's featured consumer goods winner. The sector as a whole closed the day up 0.7%. By the end of trading, Archer-Daniels Midland Company rose 47 cents (1.6%) to $29.11 on average volume. Throughout the day, 3.9 million shares of Archer-Daniels Midland Company exchanged hands as compared to its average daily volume of 5.1 million shares. The stock ranged in a price between $28.64-$29.11 after having opened the day at $28.65 as compared to the previous trading day's close of $28.64. Other companies within the Consumer Goods sector that increased today were: Orient Paper ( ONP), up 19.8%, Fuwei Films Company ( FFHL), up 13.6%, Origin Agritech ( SEED), up 12.6%, and Central European Distribution ( CEDC), up 12.6%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Archer-Daniels-Midland Company manufactures and sells protein meal, vegetable oil, corn sweeteners, flour, biodiesel, ethanol, and other value-added food and feed ingredients. Archer-Daniels Midland Company has a market cap of $18.86 billion and is part of the food & beverage industry. The company has a P/E ratio of 20, above the S&P 500 P/E ratio of 17.7. Shares are up 4.6% year to date as of the close of trading on Friday. Currently there are three analysts that rate Archer-Daniels Midland Company a buy, three analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Archer-Daniels Midland Company as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

On the negative front, SGOCO Group ( SGOC), down 6.4%, American Apparel ( APP), down 5.4%, Tandy Leather Factory ( TLF), down 5.4%, and Ocean Bio-Chem ( OBCI), down 5.3%, were all laggards within the consumer goods sector with Lululemon Athletica ( LULU) being today's consumer goods sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the consumer goods sector could consider ProShares Ultra Sht Consumer Goods ( SZK).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

You Better Buy Apple Here, a Top Chart-Loving Analyst Says

Bunge Says There Are No Talks with Suitor Glencore

Mnuchin Puts Kibosh on Border Tax as House Debates Measure