Top 5 Agriculture Stocks to Buy According to Billionaire Mario Gabelli

4. Archer Daniels Midland Company (NYSE:ADM)

GAMCO Investors’ Stake Value: $29,504,000

Percentage of GAMCO Investors’ 13F Portfolio: 0.32%

Number of Hedge Fund Holders: 42

Archer Daniels Midland Company (NYSE:ADM) is a leading global food production and agricultural commodities trading company. At the close of Q2, 42 hedge funds were long Archer Daniels Midland Company (NYSE:ADM). The total stakes of these hedge funds amounted to $658.9 million. This is compared to 42 positions in Q1 2022 with stakes worth $625.6 million.

On July 26, Archer Daniels Midland Company (NYSE:ADM) announced earnings for the second quarter of fiscal 2022. The company generated a revenue of $27 billion, up 19% year over year, and beat estimates by $2.39 billion. The company reported earnings per share of $2.15 and outperformed Wall Street consensus by $0.43. As of September 16, Archer Daniels Midland Company (NYSE:ADM) has returned 24.8% to investors year to date.

Wall Street analysts are bullish on Archer Daniels Midland Company (NYSE:ADM). On July 27, Baird analyst Ben Kallo raised his price target on Archer Daniels Midland Company (NYSE:ADM) to $94 from $87 and maintained an Outperform rating on the shares. This August, Wolfe Research analyst Sam Margolin initiated coverage of Archer Daniels with a $117 price target and a buy-side Outperform rating.

As of June 30, GAMCO Investors’ stake in Archer Daniels Midland Company (NYSE:ADM) sits at $29.5 million. The investment covers 0.32% of Mario Gabelli’s 13F portfolio.

Here is what Diamond Hill Capital had to say about Archer Daniels Midland Company (NYSE:ADM) in its first-quarter 2022 investor letter:

“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.”