Stocks were looking to recover losses this morning from a dramatic previous session following the Signature Bank and Silicon Valley Bank failures. More volatility can be expected as investors process history’s second and third-biggest bank failures. However, consumer price data released this morning soothed market sentiment as it came in primarily in line with expectations.
As of Monday, traders saw an 85% probability that the Federal Reserve would raise rates a quarter point at its next policy meeting scheduled for March 21-22. Although some think Fed officials might hold off, for now, prioritizing financial stability after high-profile bank failures rattled the financial system.
Despite challenging conditions, analysts expect our recommendation for today to climb more than 40% over the next year. Its defensive nature and global presence should help fortify earnings, regardless of the Fed’s next move.
The U.S. Economy is headed for trouble…
Why are stocks absolutely soaring right now…? Yet at the same time millions of Americans are out of work… Commercial bankruptcies are piling up… Delinquent credit card debt is skyrocketing… Not to mention, we are smack in the middle of a pandemic that has all but forced our economy to a grinding halt… Something’s just not adding up. Friend, if you are confused by all of this… You are not alone… [Full Story]
Stronger-than-anticipated results from South America have helped it post robust top and bottom-line numbers in recent quarters. In its fourth quarter, sales and operating profits were up 13.6% and 18%, respectively. Surprisingly, ADM stock trades at 0.4 times forward sales estimates, roughly 62% lower than the sector average. ADM has a yield of 2.31% and boasts an A-graded dividend profile, demonstrating dividend growth for 50 consecutive years. Moreover, its forward dividend per share growth of 7.4% is more than 40% higher than the sector average.