5 Best Organic Food and Farming Stocks To Buy

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

Number of Hedge Fund Holders: 37

Archer-Daniels-Midland Company (NYSE:ADM) is an Illinois-based food processing, commodities trading, and agriculture company. In the last three years, the company’s stock price has gained substantially. However, the company still remains fairly valued at a PE ratio of 12.65.

In the last 3 months, 5 analysts have covered Archer-Daniels-Midland Company (NYSE:ADM) with an average price target of $98.20 and a Moderate Buy rating. On October 26, Baird analyst Ben Kallo reaffirmed an Outperform rating on the company shares and raised his price target to $98 from $94.

Archer-Daniels-Midland Company (NYSE:ADM) has increased its dividend for the last 49 years and as of December 6, the company has a dividend yield of 1.75%. Furthermore, earlier this year, the company authorized a share repurchase program of $8 billion in addition to the $4 billion repurchase program authorized in May 2021. In the September quarter, Archer-Daniels-Midland Company (NYSE:ADM) repurchased stock worth $1 billion.

Diamond Hill Capital mentioned Archer-Daniels-Midland Company (NYSE:ADM) in its Q1 2022 investor letter. Here is what the firm has to say:

“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.”