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Is Archer Daniels Midland (ADM) Stock Outpacing Its Consumer Staples Peers This Year?

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Investors interested in Consumer Staples stocks should always be looking to find the best-performing companies in the group. Archer Daniels Midland (ADM - Free Report) 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Staples sector should help us answer this question.

Archer Daniels Midland is one of 194 individual stocks in the Consumer Staples sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Archer Daniels Midland is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for ADM's full-year earnings has moved 12% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, ADM has returned 13.4% so far this year. In comparison, Consumer Staples companies have returned an average of -1.3%. 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 Coca-Cola (KO - Free Report) . The stock has returned 4.9% year-to-date.

For Coca-Cola, the consensus EPS estimate for the current year has increased 1.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Archer Daniels Midland belongs to the Agriculture - Operations industry, a group that includes 14 individual stocks and currently sits at #91 in the Zacks Industry Rank. On average, stocks in this group have gained 10% this year, meaning that ADM is performing better in terms of year-to-date returns.

In contrast, Coca-Cola falls under the Beverages - Soft drinks industry. Currently, this industry has 15 stocks and is ranked #94. Since the beginning of the year, the industry has moved -0.8%.

Archer Daniels Midland and Coca-Cola could continue their solid performance, so investors interested in Consumer Staples stocks should continue to pay close attention to these stocks.


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