The article explains how to identify stocks poised for positive earnings surprises using the Zacks Earnings ESP (Expected Surprise Prediction) tool, which compares the most accurate analyst estimates to consensus estimates. When combined with a Zacks Rank #3 or better, stocks with positive ESP have historically produced positive surprises 70% of the time with 28.3% average annual returns. Two consumer staples examples highlighted are Hershey (HSY) with a +0.31% ESP and Archer Daniels Midland (ADM) with an +18.48% ESP.

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.

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.

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.

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.

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