Futures are sharply lower this morning. Investor sentiment is taking a hit as the rise in coronavirus cases threatens to halt the recovering economy. Daily covid cases have risen by a record average of 69,967 over the past week and hospitalizations are up 5% or more in 36 states.
Some states are tightening restrictions once again, in response to the resurgence in covid numbers. Illinois governor, J.B. Pritzker recently issued a ban on indoor dining. The ban will go into effect starting Friday.
Today we’re highlighting one company that is poised to benefit as more Americans avoid unnecessary social and public contact, and prepare for more time at home.
Food-related companies seem like a no brainer during the pandemic. No matter who you are or how much money you have, you need sustenance. However, things didn’t turn out that way the first time around. While companies like Kroger (KR) and Costco (COST) performed well, individual food stocks left much to be desired. So if this resurgence turns out to be the dreaded second wave, consider Archer Daniels Midland (ADM) stock.
Archer Daniels focuses on food processing and ingredients. They provide the solutions and components that all food manufacturers need to take their products to market. With ADM stock, you’re not banking on any one name, but rather, the industry.
Moreover, Archer Daniels is particularly intriguing for those interested in plant-based meat companies but who don’t want to risk the volatility of buying Beyond Meat (BYND). With ADM, you get exposure to the space but potentially mitigate the wildness.
