5 Best Commodity Stocks To Buy Now

4. Archer-Daniels-Midland Company (NYSE:ADM)

Number of Hedge Fund Holders: 37  

Archer-Daniels-Midland Company (NYSE:ADM) procures, transports, stores, processes, and merchandises agricultural commodities, products, and ingredients in the United States, Switzerland, Cayman Islands, Brazil, Mexico, the United Kingdom, and internationally. On November 28, reports indicated that Nestle, Associated British Foods, Mondelez and Archer-Daniels-Midland Company ranked £20 billion in profits in the space of a year after raising average food prices. Four of the multinationals have signaled that consumers should expect further price rises, except for Archer Daniels. 

On October 26, Baird analyst Ben Kallo maintained an Outperform rating on Archer-Daniels-Midland Company (NYSE: ADM) stock and raised the price target to $98 from $94, noting that the company’s management continues to add value to shareholders through share repurchases and strategic M&A, setting up a strong long-term outlook. 

Among the hedge funds being tracked by Insider Monkey, Glen Allen-based investment firm Markel Gayner Asset Management is a leading shareholder in Archer-Daniels-Midland Company (NYSE:ADM) with 1.5 million shares worth more than $117.7 million. 

In its Q1 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and Archer-Daniels-Midland Company (NYSE:ADM) was one of them. Here is what the fund said:

“Archer-Daniels-Midland Company (NYSE:ADM) is a leading agricultural processor that also operates a global nutrition business focused on the development of ingredients and flavors for food and beverages, supplements and more. The company’s recent operating results have benefited (unfortunately) from the war in Ukraine as grain prices and agricultural markets globally experienced strong price increases. ADM is positioned well to benefit from the volatility due to its stable North American agricultural base.”