- Which Is the Better Consumer Staples ETF, State Street's XLP or Invesco's RSPS?
May 11, 2026
Comparing the Invesco S&P 500 Equal Weight Consumer Staples ETF(NYSEMKT:RSPS) and the State Street Consumer Staples Select Sector SPDR ETF(NYSEMKT:XLP) reveals how different weighting methodologies can impact sector exposure and risk within defensive stocks.
Investors often turn to the consumer staples sector for its historically lower volatility and reliable dividends, as these companies provide essential goods that consumers buy regardless of economic conditions. While the State Street fund concentrations on industry giants, RSPS provides equal exposure to every staple company within the S&P 500 index.
Snapshot (cost & size)
Metric XLP RSPS Issuer SPDR Invesco Expense ratio 0.08% 0.40% 1-yr return (as of May 6, 2026) 6.40% 2.30% Dividend yield 2.60% 2.80% Beta 0.60 0.63 AUM $14.6 billion $235.5 million
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The State Street fund is significantly more affordable for long-term holders, maintaining a low expense ratio of 0.08%. While the Invesco fund offers a slightly higher payout with a 2.80% trailing-12-month distribution yield, its 0.40% expense ratio is five times higher than its peer.
Performance & risk comparison
Metric XLP RSPS Max drawdown (5 yr) (16.30%) (18.60%) Growth of $1,000 over 5 years (total return) $1,360.0 $1,036.0
What's inside
The Invesco S&P 500 Equal Weight Consumer Staples ETF focuses on equalizing influence across its 37 holdings, ensuring that mid-cap staples have as much impact as industry titans. Its largest positions include Casey's General Stores(NASDAQ:CASY) at 3.29%, Tyson Foods(NYSE:TSN) at 3.28%, and Archer-Daniels-Midland(NYSE:ADM) at 3.21%. This Invesco fund, which was launched in 2006, rebalances quarterly to maintain this structure and has a trailing-12-month dividend of $0.84 per share. Its portfolio is composed of 97.00% consumer defensive stocks and 3.00% consumer cyclical names.
The State Street Consumer Staples Select Sector SPDR ETF is more concentrated, holding 36 companies with a heavy tilt toward mega-caps that can dominate performance. Top holdings include Walmart(NASDAQ:WMT) at 11.93%, Costco Wholesale(NASDAQ:COST) at 9.55%, and Procter + Gamble (NYSE:PG) at 7.25%. This fund was launched in 1998 and paid $2.18 per share over the trailing 12 months. Its sector makeup consists of 99.00% consumer defensive and 1.00% consumer cyclical stocks, offering more concentrated exposure to the largest U.S. consumer companies.
Story Continues
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Having exposure to the consumer staples sector is important as a means of buoying a portfolio during turbulent macroeconomic environments. That was the case for the Invesco S&P 500 Equal Weight Consumer Staples ETF (RSPS) and State Street Consumer Staples Select Sector SPDR ETF (XLP) this year. Both funds saw their prices soar in Q1 as investors rotated away from tech stocks.
That changed in Q2, as investors flocked back to the technology industry, creating an opportunity to pick up RSPS and XLP at a lower price. Choosing which to invest in comes down to a few key differences.
XLP is the better ETF for investors who want exposure to some of the biggest companies in the consumer staples sector. This helped the fund deliver strong performance over the past year, and a lower max drawdown. XLP also offers far greater liquidity with a $14.6 billion AUM at a much lower cost. The downside is that the ETF’s performance relies heavily on its mega-cap stocks, considering Walmart and Costco alone represent about 20% of the fund.
RSPS spreads out its holdings more broadly, so one or two companies don’t have a big impact on the fund’s overall performance. This is the ETF for investors who prefer to have more equal weighting across consumer staples stocks, or who already own shares of the mega-cap stocks in the sector. However, the fund is more expensive, and its performance has not be as strong as XLP.
Should you buy stock in Invesco Exchange-Traded Fund Trust - Invesco S&P 500 Equal Weight Consumer Staples ETF right now?
Before you buy stock in Invesco Exchange-Traded Fund Trust - Invesco S&P 500 Equal Weight Consumer Staples ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Invesco Exchange-Traded Fund Trust - Invesco S&P 500 Equal Weight Consumer Staples ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $471,827!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,319,291!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 11, 2026.
Robert Izquierdo has positions in Walmart. The Motley Fool has positions in and recommends Costco Wholesale and Walmart. The Motley Fool recommends Casey's General Stores. The Motley Fool has a disclosure policy.
Which Is the Better Consumer Staples ETF, State Street's XLP or Invesco's RSPS? was originally published by The Motley Fool
View Comments
- Which Is the Better Consumer Staples ETF, State Street's XLP or Invesco's RSPS?
May 11, 2026 · fool.com
Expense ratios, yield, and portfolio concentration set these consumer staples ETFs apart. See how their strategies impact risk and long-term growth.
- XLP vs. PBJ: A Low-Cost Staples Giant Against a Concentrated Food-and-Beverage Specialist
May 10, 2026
State Street Consumer Staples Select Sector SPDR ETF(NYSEMKT:XLP) provides broad, low-cost exposure to large-cap staples, while Invesco Food & Beverage ETF(NYSEMKT:PBJ) offers a concentrated, higher-fee strategy focused on specific food-industry metrics.
Snapshot (cost & size)
Metric XLP PBJ Issuer SPDR Invesco Expense ratio 0.08% 0.61% 1-yr return (as of May 6, 2026) 6.40% 6.60% Dividend yield 2.60% 1.50% Beta 0.49 0.50 AUM $14.6 billion $94.1 million
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Cost is a major differentiator, as XLP is significantly more affordable with an expense ratio 0.53 percentage points lower than its peer. Investors looking for income could find the State Street fund more attractive, as it provides a significantly higher distribution than the Invesco fund.
Performance & risk comparison
Metric XLP PBJ Max drawdown (5 yr) (16.30%) (15.80%) Growth of $1,000 over 5 years (total return) $1,360 $1,272
What's inside
Invesco Food & Beverage ETF holds 31 stocks and focuses on the consumer defensive sector, which accounts for 81% of the portfolio. This fund, which was launched in 2005, tracks a dynamic index that selects companies based on merits like price momentum and earnings quality. Its largest positions include Archer-Daniels-Midland(NYSE:ADM) at 5.87%, Corteva(NYSE:CTVA) at 5.43%, and Mondelez International(NASDAQ:MDLZ) at 5.06%. The Invesco fund has a trailing-12-month dividend of $0.75 per share.
State Street Consumer Staples Select Sector SPDR ETF is more concentrated by sector, with 99% of its 36 holdings in consumer defensives. Launched in 1998, it tracks the Consumer Staples Select Sector Index, providing exposure to large-cap industry leaders in the S&P 500. Top holdings include Walmart(NASDAQ:WMT) at 11.93%, Costco Wholesale(NASDAQ:COST) at 9.55%, and Procter & Gamble(NYSE:PG) at 7.25%. This fund has paid $2.18 per share over the trailing 12 months.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Consumer staples surged back into favor in early 2026 as investors sought shelter from tech volatility and tariff uncertainty. Both XLP and PBJ sit within that defensive universe, but they are built very differently and serve quite different purposes.
XLP is the sector standard-bearer. It’s a straightforward, low-cost fund holding some of the largest U.S. consumer staples companies drawn from the S&P 500. Walmart, Costco, and Procter & Gamble anchor the portfolio. PBJ narrows its focus to food and beverage specifically, using a proprietary quantitative screen to select stocks based on fundamental factors rather than simply tracking an index.
Story Continues
The cost difference is difficult to overcome. PBJ charges nearly eight times what XLP does — a gap that demands consistent outperformance to justify, which the fund has not reliably delivered. PBJ also manages a fraction of XLP's assets, meaning liquidity and institutional backing are far thinner.
For most investors, XLP's simplicity, scale, and cost efficiency make it the more compelling choice. PBJ suits those making a deliberate, concentrated bet on food and beverage who believe the quantitative methodology can earn its premium.
Should you buy stock in Invesco Exchange-Traded Fund Trust - Invesco Food & Beverage ETF right now?
Before you buy stock in Invesco Exchange-Traded Fund Trust - Invesco Food & Beverage ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Invesco Exchange-Traded Fund Trust - Invesco Food & Beverage ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $471,827!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,319,291!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 10, 2026.
Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Walmart. The Motley Fool has a disclosure policy.
XLP vs. PBJ: A Low-Cost Staples Giant Against a Concentrated Food-and-Beverage Specialist was originally published by The Motley Fool
View Comments
- XLP vs. PBJ: A Low-Cost Staples Giant Against a Concentrated Food-and-Beverage Specialist
May 10, 2026
Key Points
State Street Consumer Staples Select Sector SPDR ETF offers a significantly lower expense ratio and higher dividend yield than Invesco Food & Beverage ETF. Invesco Food & Beverage ETF focuses on a narrow selection of holdings using a dynamic index strategy while the State Street fund provides broad coverage of the S&P 500 staples sector. While both funds show similar volatility profiles with betas around 0.50, the State Street fund manages $14.6 billion in assets under management (AUM) compared to $94.1 million for the Invesco fund. 10 stocks we like better than Invesco Exchange-Traded Fund Trust - Invesco Food & Beverage ETF ›
State Street Consumer Staples Select Sector SPDR ETF(NYSEMKT:XLP) provides broad, low-cost exposure to large-cap staples, while Invesco Food & Beverage ETF(NYSEMKT:PBJ) offers a concentrated, higher-fee strategy focused on specific food-industry metrics.
Snapshot (cost & size) MetricXLPPBJIssuerSPDRInvescoExpense ratio0.08%0.61%1-yr return (as of May 6, 2026)6.40%6.60%Dividend yield2.60%1.50%Beta0.490.50AUM$14.6 billion$94.1 million
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Cost is a major differentiator, as XLP is significantly more affordable with an expense ratio 0.53 percentage points lower than its peer. Investors looking for income could find the State Street fund more attractive, as it provides a significantly higher distribution than the Invesco fund.
Performance & risk comparison MetricXLPPBJMax drawdown (5 yr)(16.30%)(15.80%)Growth of $1,000 over 5 years (total return)$1,360$1,272
What's inside
Invesco Food & Beverage ETF holds 31 stocks and focuses on the consumer defensive sector, which accounts for 81% of the portfolio. This fund, which was launched in 2005, tracks a dynamic index that selects companies based on merits like price momentum and earnings quality. Its largest positions include Archer-Daniels-Midland(NYSE:ADM) at 5.87%, Corteva(NYSE:CTVA) at 5.43%, and Mondelez International(NASDAQ:MDLZ) at 5.06%. The Invesco fund has a trailing-12-month dividend of $0.75 per share.
State Street Consumer Staples Select Sector SPDR ETF is more concentrated by sector, with 99% of its 36 holdings in consumer defensives. Launched in 1998, it tracks the Consumer Staples Select Sector Index, providing exposure to large-cap industry leaders in the S&P 500. Top holdings include Walmart(NASDAQ:WMT) at 11.93%, Costco Wholesale(NASDAQ:COST) at 9.55%, and Procter & Gamble(NYSE:PG) at 7.25%. This fund has paid $2.18 per share over the trailing 12 months.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Consumer staples surged back into favor in early 2026 as investors sought shelter from tech volatility and tariff uncertainty. Both XLP and PBJ sit within that defensive universe, but they are built very differently and serve quite different purposes.
XLP is the sector standard-bearer. It’s a straightforward, low-cost fund holding some of the largest U.S. consumer staples companies drawn from the S&P 500. Walmart, Costco, and Procter & Gamble anchor the portfolio. PBJ narrows its focus to food and beverage specifically, using a proprietary quantitative screen to select stocks based on fundamental factors rather than simply tracking an index.
The cost difference is difficult to overcome. PBJ charges nearly eight times what XLP does — a gap that demands consistent outperformance to justify, which the fund has not reliably delivered. PBJ also manages a fraction of XLP's assets, meaning liquidity and institutional backing are far thinner.
For most investors, XLP's simplicity, scale, and cost efficiency make it the more compelling choice. PBJ suits those making a deliberate, concentrated bet on food and beverage who believe the quantitative methodology can earn its premium.
Should you buy stock in Invesco Exchange-Traded Fund Trust - Invesco Food & Beverage ETF right now?
Before you buy stock in Invesco Exchange-Traded Fund Trust - Invesco Food & Beverage ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Invesco Exchange-Traded Fund Trust - Invesco Food & Beverage ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $471,827!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,319,291!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 10, 2026.
Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Walmart. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
- XLP vs. PBJ: A Low-Cost Staples Giant Against a Concentrated Food-and-Beverage Specialist
May 10, 2026 · fool.com
Expense ratio, dividend yield, and portfolio breadth set these consumer staples ETFs apart-see how their strategies and holdings compare.
- Archer Daniels Midland Shareholders Back Board, Reject Pesticide Disclosure Push
May 9, 2026
Archer Daniels Midland logo
Key Points
Interested in Archer Daniels Midland Company? Here are five stocks we like better. ADM shareholders re-elected all 13 board nominees and approved management-backed items, including executive compensation on an advisory basis, ratification of Ernst & Young as auditor, and an amendment to the 2020 Incentive Compensation Plan. Shareholders rejected a proposal from As You Sow that would have required ADM to disclose more detail on pesticide use data tied to its regenerative agriculture program. In remarks at the meeting, CEO Juan Luciano said ADM posted $3.2 billion in segment operating profit in 2025, generated strong cash flow, and continued advancing cost savings, portfolio simplification, carbon capture, and AI-driven efficiency efforts.
3 Safe Buy-and-Hold Dividend Stocks With Strong Balance Sheets
Archer Daniels Midland (NYSE:ADM) stockholders elected all 13 director nominees and approved several management-backed proposals at the company’s 103rd annual meeting, while rejecting a shareholder proposal seeking additional disclosure on pesticide use data tied to ADM’s regenerative agriculture program.
Regina Jones, ADM’s senior vice president, chief legal officer and corporate secretary, said the company had 481,895,100 shares of common stock outstanding and entitled to vote as of the March 13, 2026, record date. Jones said a quorum was present and that final vote totals would be certified by the inspector of election and reported in a Form 8-K filed with the Securities and Exchange Commission.
Stockholders Approve Board Nominees and Compensation Items
→ Light Speed Returns: Corning Cashes In on NVIDIA Growth
3 Companies Buying Back Stock: Here’s Why They’re Doing It
Juan Luciano, ADM’s chair of the board, president and chief executive officer, presented the company’s director slate, saying the board had set its size at 13 members. Stockholders elected all 13 nominees: Mike Burke, Ted Colbert, Jim Collins, Terry Crews, Ellen de Brabander, Suzan Harrison, Juan Luciano, David McAtee, Michael McMurray, Pat Moore, Debra Sandler, Lei Zhang Schlitz and Kelvin Westbrook.
Jones said preliminary results showed all directors were elected “with a substantial majority of the votes cast.” Stockholders also approved, on an advisory basis, the compensation of ADM’s named executive officers.
→ The Hormuz Defense Hedge: Cashing In on Chaos
5 Dividend Aristocrats to Buy Now and Hold Through 2025
In addition, shareholders ratified the Audit Committee’s appointment of Ernst & Young as ADM’s independent auditor for 2026 and approved an amendment to the company’s 2020 Incentive Compensation Plan.
Story Continues
Pesticide Disclosure Proposal Fails
The only shareholder proposal presented at the meeting was submitted by As You Sow on behalf of John Chevedden. The proposal asked ADM to issue a report, at reasonable expense and excluding proprietary information, disclosing if and how the company can incorporate pesticide use data in its regenerative agriculture program disclosures.
→ Uber's Annual Product Showcase Reveals It Is Coming for Airbnb and Booking
Cailin Dendas, who leads the Environmental Health Program at As You Sow, presented the proposal. She argued that pesticide use can degrade soil health and harm farmworkers, fenceline communities, biodiversity, pollinators, air quality and water quality. Dendas said ADM defines regenerative agriculture as an outcome-based farming approach that protects and improves soil health, but she said the company does not require regenerative growers to reduce or eliminate pesticide use.
Dendas also said ADM is already tracking pesticide use on what she described as “a significant portion” of enrolled farms through the Gradable platform, and that the proposal was asking the company to disclose data it already collects. She said such disclosure would help shareholders evaluate whether ADM is addressing related risks.
Luciano said the board recommended voting against the proposal, stating that, as outlined in the proxy, the board believed it was not in the best interests of ADM and its stockholders. Jones later said the proposal was not approved.
Luciano Highlights 2025 Results and Strategic Priorities
In remarks following the formal business portion of the meeting, Luciano described 2025 as a year “defined by complexity,” citing a shifting geopolitical and trade environment, ample global grain and oilseed supplies, uncertainty in biofuels policy, changing consumer behavior and constrained export flows to markets including China.
Luciano said ADM delivered $3.2 billion in segment operating profit and solid cash flow while maintaining a strong balance sheet. He also highlighted ADM’s dividend record, saying the company has increased its dividend for 53 consecutive years and paid uninterrupted dividends for more than nine decades.
Luciano said ADM achieved approximately $200 million in cost savings during 2025 and remained on track toward its multiyear target. He also cited improved plant efficiency, restored operations at the company’s Decatur East facility and more than 20 portfolio simplification actions, including ADM’s animal nutrition joint venture with Alltech.
ADM also reached what Luciano called a “major decarbonization milestone” by connecting its Columbus, Nebraska, facility to carbon capture infrastructure, which he described as the largest bioethanol carbon capture and storage project globally. He said ADM expanded partnerships with more than 28,000 farmers to advance regenerative agriculture and strengthen supply chain resilience.
Growth Platforms and Use of AI
Luciano outlined several growth platforms for ADM, including Advanced Nutrition, Functional Health, Biosolutions, Precision Fermentation and Decarbonization. He said these initiatives are intended to leverage the company’s core businesses while expanding into new markets.
During the question-and-answer portion of the meeting, Luciano said ADM is using artificial intelligence, data and automation in a “practical and returns-driven way.” He said the company applies advanced analytics and automation in plants and supply chains to improve efficiency, predict maintenance needs and optimize throughput. He also said ADM is using AI in nutrition and health innovation, as well as in forecasting and customer insights.
Luciano said AI is “not a standalone initiative” but supports operational excellence, innovation and growth, adding that ADM is deploying the technology with governance and board oversight.
Board Experience and Tax Work Location
In response to a shareholder question about whether ADM has directors with farming experience, Luciano said at least two directors have experience as farm and ranch owner-operators. He said the board evaluates composition deliberately to align skills and experience with ADM’s strategy, citing agriculture, technology, cybersecurity, consumer health and wellness, finance and capital allocation expertise among current directors.
Luciano also addressed a question about why ADM decided to change the location of certain tax accounting work. He said ADM regularly evaluates how work is structured and where it is performed across the organization as part of broader efforts to strengthen competitiveness. Luciano said the company aims to improve efficiency, enhance consistency and support business needs while maintaining governance, compliance and risk management standards.
Looking ahead, Luciano said ADM expects stronger visibility into supply and demand, including greater clarity in biofuels policy and improving trade flows, while continuing to monitor geopolitical conflict and consumer dynamics. He said ADM is focused on productivity, asset optimization, innovation and long-term value creation as it approaches its 125th anniversary in 2027.
About Archer Daniels Midland (NYSE:ADM)
Archer Daniels Midland Company (ADM) is a global agricultural processor and food-ingredient provider that sources, transports and processes oilseeds, corn, wheat and other agricultural commodities. The company operates large-scale crushing, refining and processing facilities that produce vegetable oils, protein meals, corn sweeteners, starches, ethanol, animal feeds and a wide range of food and industrial ingredients. ADM also develops specialty ingredients and solutions for human and animal nutrition, food and beverage formulation, and industrial applications such as bio-based materials and renewable fuels.
ADM's business combines commodity origination and merchandising with downstream manufacturing and ingredient formulation.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
The article "Archer Daniels Midland Shareholders Back Board, Reject Pesticide Disclosure Push" was originally published by MarketBeat.
View MarketBeat's top stocks for May 2026.
View Comments
- Archer Daniels Midland Shareholders Back Board, Reject Pesticide Disclosure Push
May 9, 2026 · marketbeat.com
Archer Daniels Midland NYSE: ADM stockholders elected all 13 director nominees and approved several management-backed proposals at the company's 103rd annual meeting, while rejecting a shareholder proposal seeking additional disclosure on pesticide use data tied to ADM's regenerative agriculture program.
- Morgan Stanley Says ADM Delivered Solid Results but Risks Remain
May 9, 2026
With a YTD Return of 31.9% as of May 7, Archer-Daniels-Midland Company (NYSE:ADM) is included among the 10 Best Stocks to Buy to Beat the S&P 500.Morgan Stanley Says ADM Delivered Solid Results but Risks Remain
On May 7, Morgan Stanley raised its price recommendation on Archer-Daniels-Midland Company (NYSE:ADM) to $58 from $54. It reiterated an Underweight rating on the shares. The firm said ADM delivered “solid results,” but its cautious stance remains tied to a preference for the company-specific opportunity at Bunge (BG). The analyst also pointed to risks at ADM that could limit upside to earnings growth.
During the Q1 2026 earnings call, Juan Luciano, Chairman, CEO, and President of ADM, said the company reported adjusted earnings per share of $0.71 and total segment operating profit of $764 million for the quarter. He added that trailing four-quarter adjusted return on invested capital was 6.4%, while cash flow from operations before working capital changes reached $442 million.
Luciano said market conditions improved for ADM’s biofuels-related businesses during the quarter. According to him, the crushing and ethanol segments benefited from a stronger commodity and margin environment. He also noted that soybean crush and ethanol margins improved significantly as markets anticipated the finalization of renewable volume obligations for 2026 and 2027. Luciano announced that ADM had raised its earnings outlook for 2026. The company increased its full-year adjusted EPS guidance range to $4.15-$4.70 from the previous range of $3.60-$4.25.
Archer-Daniels-Midland Company (NYSE:ADM) is a global agricultural supply chain manager and processor. The company provides food security services and operates in both human and animal nutrition markets.
While we acknowledge the potential of ADM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 10 Best Value Stocks to Buy in 2026 According To Warren Buffett and 10 Best Performing Dividend Stocks So Far in 2026
Disclosure: None. Follow Insider Monkey on Google News.
View Comments
- 3 AgTech & Food Innovation Stocks to Watch as Food Systems Evolve
May 8, 2026
An updated edition of the March 19, 2026 article.
The agricultural technology (AgTech) and food innovation space is becoming an increasingly attractive investment theme, supported by rising food demand, resource constraints and the need for productivity-led transformation. As farmers and food producers face pressure from climate volatility, changing dietary habits and higher input costs, the industry is shifting toward more efficient, technology-driven and sustainable production models.
A major growth driver is the increasing focus on sustainable and alternative food solutions. Consumers are becoming more conscious about health, environmental impact and ingredient transparency, driving demand for plant-based and functional food products. Beyond Meat, Inc. BYND is positioned within this trend through its portfolio of plant-based meat alternatives designed to address evolving protein consumption patterns and sustainability concerns.
At the same time, innovation across food ingredients and processing technologies is reshaping how products are developed and marketed. Food manufacturers are investing in clean-label ingredients, plant-based proteins and nutritional enhancement to align with changing consumer preferences. Ingredion Incorporated INGR fits naturally into this theme through its specialty starches, sweeteners and plant-based ingredient solutions used across a wide range of modern food applications.
Technology is also helping improve efficiency across the broader agricultural and food supply chain. Advances in data analytics, biotechnology and precision farming are enabling producers to optimize resources, improve yields and reduce waste. These innovations are supporting a more resilient and scalable food ecosystem capable of meeting long-term global demand.
The AgTech and food innovation theme stands out because it connects essential consumption with ongoing industrial change. The sector is not only about producing more food but also doing so with greater efficiency, sustainability and adaptability to shifting consumer preferences. This creates opportunities across multiple parts of the value chain. From the AgTech & Food Innovation Screen, Deere & Company DE, Archer-Daniels-Midland Company ADM and Tyson Foods, Inc. TSN represent varied exposure to this opportunity, spanning smart farm equipment, agricultural processing and protein production.
Explore 37 cutting-edge investment themes with Zacks Thematic Investing Screens and discover your next big opportunity.
3 AgTech & Food Innovation Stocks in Focus
Archer-Daniels-Midland is expanding its role in the AgTech and food innovation space by combining its agricultural scale with nutrition, biosolutions and sustainability-focused initiatives. As consumer preferences shift toward healthier, cleaner-label and more sustainable products, the Zacks Rank #2 (Buy) company is investing in technologies and ingredient platforms designed to support evolving food and industrial demand. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A major focus area is advanced nutrition. ADM is building capabilities in natural colors, flavors and specialty ingredients as food manufacturers move away from artificial additives. The company is also developing functional health solutions across areas such as digestive health, immune support, stress, mood and sleep, aligning its portfolio with growing demand for wellness-oriented food and nutrition products.
Archer-Daniels is also advancing biosolutions and precision fermentation to create more sustainable products and applications. Its initiatives include starch-based solutions for industrial and consumer applications, animal-free protein for pet food and novel enzymes for food use. The company is also investing in decarbonization efforts, including carbon capture, renewable natural gas and sustainable aviation fuel pathways, reinforcing its broader role in next-generation food and agricultural systems.
Tyson Foods is expanding its role in food innovation by combining branded protein products, digital capabilities and operational technology to meet evolving consumer preferences. As consumers increasingly prioritize high-protein, convenient and clean-label food options, TSN is focusing on value-added products, nutrition-oriented innovation and technology-enabled insights to strengthen its position across retail and foodservice channels.
Prepared Foods remains a key innovation platform for Tyson Foods. The Zacks Rank #2 company’s portfolio includes brands such as Jimmy Dean, Aidells and Hillshire, which align with demand for convenient, protein-rich offerings. Tyson Foods is also developing higher-protein products under the Jimmy Dean brand, including breakfast sandwiches, bowls and waffles aimed at younger consumers and health-conscious households.
TSN is also using operational technology and genetic innovation to improve efficiency across its chicken business. The company’s poultry genetics platform supports feed efficiency, hatch performance and meat yields, while improvements across live production and processing are helping drive more consistent execution. These initiatives support Tyson Foods’ broader push into value-added, branded protein products.
Deere & Company is positioning itself at the center of the agricultural technology transformation by combining precision agriculture, automation and connected equipment solutions. As farms increasingly adopt data-driven tools to improve productivity and manage input costs, the Zacks Rank #3 (Hold) company continues to invest in smart machinery and digital platforms that support more efficient planting, spraying, harvesting and fleet management.
Technology-enabled productivity remains a key part of Deere’s long-term strategy. Its advanced equipment features, including harvest automation and connected farming tools, are designed to help producers make more informed decisions and improve field-level execution. DE also continues to build its digital ecosystem through the John Deere Operations Center, which supports data connectivity, machine monitoring and precision farming capabilities.
Deere is further strengthening its broader AgTech ecosystem through strategic investments and acquisitions. The acquisition of Tenna adds fleet-management and job-site optimization capabilities, while continued investment in AI, automation and precision technologies supports the company’s push toward smarter, more connected operations. These initiatives reinforce Deere’s role in helping customers improve productivity, reduce resource intensity and modernize agricultural and infrastructure workflows.
Story Continues
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE) : Free Stock Analysis Report
Archer Daniels Midland Company (ADM) : Free Stock Analysis Report
Tyson Foods, Inc. (TSN) : Free Stock Analysis Report
Ingredion Incorporated (INGR) : Free Stock Analysis Report
Beyond Meat, Inc. (BYND) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
View Comments
- 3 AgTech & Food Innovation Stocks to Watch as Food Systems Evolve
May 8, 2026 · zacks.com
DE, ADM & TSN tap AgTech and food innovation trends as demand grows for smarter farming, sustainable ingredients and protein solutions.
