ADM - Archer-Daniels-Midland: Don't Buy Into Investigations (Technical Analysis)
2024-05-04 03:55:34 ET
Summary
- Archer-Daniels-Midland stock currently yields far above its historical range.
- However, its situation reminds us of the old adage of “don't buy into lawsuits”.
- The stock is facing investigations by the DOJ and SEC, casting large uncertainties on its finances, EPS forecast, and investor sentiment.
ADM stock faces DOJ and SEC investigations
Archer-Daniels-Midland Company (ADM) showed up near the top of our screening results this month when we looked for stocks with yields noticeably above their historical ranges. As you can see from the charts below, ADM is currently yielding almost 3.4% (shown by the solid red line). This is not only far above its historical average (represented by the grey dotted line) but also close to the +1 standard deviation level (represented by the orange line with symbols). BTW, ADM is a dividend champion with more than 25 years of consecutive dividend increases. Thus, its dividends also serve as a good indicator for its true economic earnings and dividend yields as a good valuation indicator....
Archer-Daniels-Midland: Don't Buy Into Investigations (Technical Analysis)