The Consumer Staples group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Archer Daniels Midland (ADM) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Consumer Staples peers, we might be able to answer that question.
Archer Daniels Midland is a member of our Consumer Staples group, which includes 173 different companies and currently sits at #14 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Archer Daniels Midland is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for ADM's full-year earnings has moved 4.7% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that ADM has returned about 20.4% since the start of the calendar year. In comparison, Consumer Staples companies have returned an average of 4.3%. This means that Archer Daniels Midland is outperforming the sector as a whole this year.
Another Consumer Staples stock, which has outperformed the sector so far this year, is Post Holdings (POST). The stock has returned 4.6% year-to-date.
Over the past three months, Post Holdings' consensus EPS estimate for the current year has increased 3.2%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Archer Daniels Midland is a member of the Agriculture - Operations industry, which includes 11 individual companies and currently sits at #78 in the Zacks Industry Rank. On average, stocks in this group have gained 16.5% this year, meaning that ADM is performing better in terms of year-to-date returns.
On the other hand, Post Holdings belongs to the Food - Miscellaneous industry. This 41-stock industry is currently ranked #182. The industry has moved -4.1% year to date.
Investors interested in the Consumer Staples sector may want to keep a close eye on Archer Daniels Midland and Post Holdings as they attempt to continue their solid performance.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power .
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Archer Daniels Midland Company (ADM): Free Stock Analysis Report
Post Holdings, Inc. (POST): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).