ADM Hits All Time High


  • 100% technical buy signals
  • 12 new highs and up 10.39% in the last month
  • 49.19% gain in the last year

The Chart of the Day belongs to the agricultural commodities company Archer-Daniels-Midland (ADM). We are in the midst of a bull market in agricultural commodities and ADM is one of the largest players. I found the stock by sorting Barchart's All-Time High list first for the highest Weighted Alpha and technical buy signals, then looked for the stock with the most frequent number of new highs in the last month. As always I used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Spotter signaled a buy in 12/29 the stock gained 11.50%.

ADM price vs DMAs

ADM price vs its daily moving averages

Archer-Daniels-Midland Company procures, transports, stores, processes, and merchandises agricultural commodities, products, and ingredients in the United States and internationally. The company operates through three segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition. It procures, stores, cleans and transports agricultural raw materials, such as oilseeds, corn, wheat, milo, oats, and barley. The company also engages in the agricultural commodity and feed product import, export, and distribution; and structured trade finance activities. In addition, it offers vegetable oils and protein meals; ingredients for the food, feed, energy, and industrial customers; crude vegetable oils, salad oils, margarine, shortening, and other food products; and partially refined oils to produce biodiesel and glycols for use in chemicals, paints, and other industrial products. Further, the company provides peanuts, peanut-derived ingredients, and cotton cellulose pulp; sweeteners, corn and wheat starches, syrup, glucose, wheat flour, and dextrose; alcohol and other food and animal feed ingredients; ethyl alcohol and ethanol; corn gluten feed and meal, as well as distillers' grains; and citric acids. Additionally, the company provides natural flavor ingredients, flavor systems, natural colors, proteins, emulsifiers, soluble fiber, polyols, hydrocolloids, and natural health and nutrition products, including probiotics, prebiotics, enzymes, and botanical extracts; and other specialty food and feed ingredients; edible beans; formula feeds, and animal health and nutrition products; and contract and private label pet treats and foods. It also offers futures commission merchant and insurance services. The company was founded in 1902 and is headquartered in Chicago, Illinois.Yahoo Finance

Barchart Technical Indicators:

  • 100% technical buy signals
  • 41.55+ Weighted Alpha
  • 49.19% gain in the last year
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 12 new highs and up 10.39% in the last year
  • Technical support level at 74.63
  • Recently traded at 75.01 with a 50 day moving average of 67.19

Fundamental Factors:

  • Market Cap $42.48 billion
  • P/E 14.30
  • Dividend yield 1.95%
  • Revenue is expected to grow 1.00% this year and another 1.90% next year
  • Earnings are estimated to increase 1.20% next year and continue to compound at an annual rate of 6.60% for the next 5 years

Analysts and Investor sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:

  • Wall Street analysts issued 7 strong buy, 2 buy and 6 hold and 1 underperform opinions on the stock
  • Some analysts have a price target as high as 80.00
  • The individual investors following the stock on Motley Fool voted 1,856 to 136 for the stock to beat the market with the more experienced investors voting 253 to 22 for the same result
  • 47,780 investors are monitoring the stock on Seeking Alpha
  • Seeking Alpha gives the stock a Quant rating of 3.48 hold

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the ...

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