While it’s a risky bet at the moment, it looks like most of the negativity has been priced into Archer Daniels Midland (ADM). Earlier this week, the stock gapped from about $67.50 to $52.31 on an accounting probe. Not only was ADM force to downgrade its outlook, but it also placed its CFO on leave. But again, it does look like a good deal of negativity has been priced in.
Plus, we’re also starting to see buyers return on excessively oversold conditions. For one, the stock hasn’t been this cheap since 2021. Two, it’s now wildly oversold on RSI, MACD, and Williams’ %R. It’s also now trading at 8x earnings, and at less than half of sales. In addition, as investors wait for ADM to come back, they can collect ADM’s current yield of 3.44%.