ADM

The article explains how to use the Zacks Earnings ESP (Expected Surprise Prediction) filter to identify stocks likely to beat earnings expectations. It highlights two consumer staples stocks with positive ESP: Archer Daniels Midland (ADM) with an +18.48% ESP ahead of November 3 earnings, and BJ's Wholesale Club (BJ) with a +2.54% ESP before November 20 earnings. Both stocks are positioned to potentially exceed analyst consensus estimates.

ADM stock declined 2.54% to $80.51 on October 19, 2026, underperforming the broader market which gained 0.41%. The stock has depreciated 3.02% over the past month, lagging the Consumer Staples sector's 3.59% gain.

However, upcoming earnings on November 3 are expected to show strong growth with EPS of $1.44 (up 56.52% YoY) and revenue of $22.67 billion (up 11.3% YoY). ADM currently holds a Zacks Rank of #3 (Hold) with a Forward P/E of 15.03, trading at a premium to its industry average.

Archer Daniels Midland (ADM) reported a 22% year-over-year increase in Carbohydrate Solutions operating profit to $411 million in Q2 2026, driven by strong ethanol margins and policy incentives that offset weakness in liquid sweeteners. ADM raised its expected 2026 benefit from the 45Z policy to $250 million from $150 million, supporting its outlook despite ongoing challenges in North American sweetener volumes.

Archer Daniels Midland (ADM) has demonstrated a consistent pattern of beating earnings estimates, surpassing consensus by an average of 18.58% over the last two quarters. With a positive Earnings ESP of +18.48% and a Zacks Rank #1 (Strong Buy) rating, analysts suggest the company is well-positioned to continue this streak in its next earnings report expected on November 3, 2026.

Archer Daniels Midland (ADM) reported a 22% year-over-year decline in equity earnings from its Wilmar International investment to $60 million in Q2 2026. While ADM's broader business benefited from stronger oilseed profits and nearly 5% growth in global processing volumes, Wilmar's weakness persisted due to commodity price fluctuations, margin pressures, and rising costs. ADM shares have gained 16.2% in the past six months and carry a Zacks Rank #1 (Strong Buy) rating.

With U.S. consumer sentiment hitting rock bottom in October due to inflation concerns and geopolitical tensions, analysts recommend four defensive consumer staples stocks: ADM, DOLE, DEO, and HSY. These companies offer low beta exposure and dividend yields, providing stability during market volatility and potential Federal Reserve rate hikes.

Ambev (ABEV) is outperforming its Consumer Staples sector peers with a 29.2% year-to-date return compared to the sector average of 6.6%, supported by improving analyst sentiment with a 1.6% upward revision in consensus earnings estimates. The stock holds a Zacks Rank #2 (Buy). Archer Daniels Midland (ADM) has shown even stronger performance with a 43.4% year-to-date return and a Zacks Rank #1 (Strong Buy), driven by a 15.6% increase in consensus EPS estimates over the past three months.

Archer Daniels Midland (ADM) has broken above its 50-day simple moving average, signaling renewed technical strength. The company raised its 2026 adjusted EPS guidance to $5.15-$5.60 from $4.15-$4.70, driven by improved crushing and ethanol economics, stronger biofuels backdrop, and accelerating Nutrition segment momentum. ADM has outperformed peers and the broader market with a 43% year-to-date gain, though it trades at a premium valuation of 14.61X forward P/E compared to the industry average of 8.06X.

ADM closed at $82.47, gaining 2.51% and outpacing the S&P 500's 0.66% gain. The company has a Zacks Rank #1 (Strong Buy) rating with projected EPS of $1.53 (up 66.30% YoY) and revenue of $22.07 billion (up 8.34% YoY). However, ADM trades at a Forward P/E of 14.73, above its industry average of 10.08, and has a PEG ratio of 2.45 versus the industry average of 1.39.

Archer Daniels Midland's Ag Services operating profit jumped 159% year-over-year in Q2 2026, driven by strong Chinese demand for U.S. soybeans. China is purchasing approximately 1 million tons of soybeans weekly toward its 25-million-ton 2026 commitment. ADM expects continued Chinese purchases to support volumes and margins, though Q3 results may be slightly lower than Q2, with Q4 performance dependent on export pace and potential corn/sorghum programs.

The global protein ingredients market is projected to grow from US$42.3 billion in 2025 to US$65 billion by 2032, with a CAGR of 6.3%. Plant-based proteins, particularly pea protein, and the Asia-Pacific region are driving growth.

Animal Feed is expected to be the fastest-growing application segment, while whey protein remains the largest animal protein category. Key drivers include increasing health consciousness, sports nutrition demand, and sustainable nutrition product development.

Darling Ingredients (DAR) is expected to report Q3 2026 earnings on Oct. 29 with revenues projected at $1.8B (+14% YoY) and EPS of $1.89. Strong feed demand, collagen sales, and renewable fuel shipments should support results, though weather challenges and sales timing shifts to Q4 may impact the quarter. The stock carries a Zacks Rank #2 with a negative Earnings ESP of -10.05%, suggesting limited odds of an earnings beat.

A comprehensive market report projects substantial transformation in the global ethanol market through 2036, driven by sustainable aviation fuel (SAF) via Alcohol-to-Jet pathways, industrial-grade ethanol demand from semiconductors and pharmaceuticals, and regulatory support through clean fuel credits. The U.S. and Brazil remain leading producers, with emerging opportunities in India, China, and Southeast Asia. The report forecasts growth across fuel ethanol, industrial applications, and SAF production under multiple scenarios.

Procter & Gamble is set to report Q1 fiscal 2027 results on October 22, with sales projected to rise 1.4% to $22.7B but EPS expected to decline 5%. Higher input costs and inflation are pressuring gross margins, projected to contract 120 basis points. While the company benefits from innovation and pricing strategies, valuation concerns persist with a forward P/E of 22.02X, above industry averages.

With U.S. consumer sentiment hitting rock bottom in October amid economic concerns, rising inflation, and potential further rate hikes, Zacks analysts recommend four defensive consumer staples stocks: Archer-Daniels-Midland, Dole, Diageo, and The Hershey Company. These low-beta stocks offer stability during market volatility while maintaining growth potential.

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