7 Best Sugar Stocks to Buy According to Analysts

2. Archer-Daniels-Midland Company (NYSE:ADM)

Upside Potential: 12.80%

Number of Hedge Fund Holders: 38

Archer-Daniels-Midland Company (NYSE:ADM) has cemented its position as a major player in the sweetener and carbohydrate sectors. In 2024, the company’s Carbohydrate Solutions division, which produces glucose, high-fructose corn syrup, and other sweeteners, reported an operating profit of $1.4 billion. The company’s resilience and operational efficiency were highlighted by the strong margins and volumes in North America, which helped counterbalance the lower ethanol and co-product values in the EMEA (Europe, the Middle East, and Africa) region.

In its financial performance results for the year ended December 31, 2024, Archer-Daniels-Midland Company (NYSE:ADM) reported adjusted earnings per share (EPS) of $4.74 for the entire year, with its reported EPS at $3.65. Adjusted net earnings came to $2.3 billion, while net earnings stood at $1.8 billion. Growth in North America’s volumes and margins contributed to the improvements during the year, while weaker ethanol and by-product sales in EMEA offset the growth. Reaffirming its commitment to long-term stability, ADM announced a set of focused initiatives to further strengthen its financial position. These actions are expected to provide cost savings of $500 to $750 million over the next three to five years.

Furthermore, Archer-Daniels-Midland Company (NYSE:ADM) raised its quarterly dividend by 2% to $0.51 per share, demonstrating its commitment to shareholder value. Additionally, the company expanded its share repurchase program by 100 million shares over the following five years.

Archer-Daniels-Midland Company (NYSE:ADM)’s strategic objectives also demonstrate the company’s dedication to expanding its presence in the sugar and sweetener industry. A significant part of the company’s portfolio, the Starches & Sweeteners subsegment, reported a 1% increase in operating profit, indicating consistent demand for sugar-based ingredients, such as glucose and dextrose. Additionally, increased North American volumes and enhanced plant efficiencies contributed to a 3% improvement in operating profit for ADM’s Carbohydrate Solutions division in Q4. These outcomes highlight ADM’s ongoing emphasis on innovation and operational efficiencies.

Archer-Daniels-Midland Company (NYSE:ADM)’s dedication to sustainability was demonstrated when it received the 2025 BIG Innovation Award for its regenerative agriculture initiative. The company is positioned for future growth and efficiency through its investments in digitization and facility modernization.