7 Agricultural Technology Stocks to Buy as Commodity Prices Remain Volatile - 1 of 7

#1 - Archer-Daniels Midland (NYSE:ADM)

The first agricultural technology stock on our list is the definition of a pandemic winner. Archer-Daniels Midland (NYSE:ADM) stock is up 149% since its pandemic low in March 2020. And the company has at least two key catalysts that could push the stock higher.

First, the company is involved in the development of alternative proteins. The plant-based food movement is becoming big business and the company has undertaken a $300 million expansion of its Decatur, Illinois plant to meet this growing demand. Second, the company will be a key link in the supply chain to transport higher ethanol blends of gasoline in the summer to help ease pricing pressure.

The stock currently has a price-to-earnings (P/E) ratio of 15.43 which is below the sector average. And even though both earnings and revenue are forecast to peak in 2022 and decline in subsequent years. Both metrics will remain above pre-pandemic levels. Plus, the company offers a solid annual dividend of $1.60 that it has been increasing for the last 49 years.

About Archer-Daniels-Midland

Archer-Daniels-Midland Company engages in the procurement, transportation, storage, processing, and merchandising of agricultural commodities, ingredients, flavors, and solutions in the United States, Switzerland, the Cayman Islands, Brazil, Mexico, Canada, the United Kingdom, and internationally. It operates in three segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition. Read More 

Current Price

$60.42

Consensus Rating

Reduce

Ratings Breakdown

0 Buy Ratings, 14 Hold Ratings, 1 Sell Ratings.

Consensus Price Target

$67.50 (11.7% Upside)