Fresh Strong Sell Stocks for December 3rd
Stocks Added to Zacks Rank #5: Alamo Group Inc. (ALG), Archer-Daniels-Midland Company (ADM), and Associated British Foods plc (ASBFY) have been added to the Zacks Rank #5 (Strong Sell) List due to significant downward revisions in their earnings estimates over the past 60 days.
Earnings Estimate Revisions: Alamo Group's earnings estimate was revised down by 10%, ADM's by 14.5%, and Associated British Foods' by 18.2%, indicating potential challenges for these companies.
AI Investment Insights: The article suggests that while well-known AI stocks have generated wealth, lesser-known AI firms addressing major global issues may offer more lucrative investment opportunities in the future.
Free Stock Analysis Reports: Zacks Investment Research offers free stock analysis reports for the mentioned companies, encouraging readers to explore investment options.
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- Market Decline: The S&P 500 index fell by 0.84%, the Dow Jones by 0.34%, and the Nasdaq 100 by 1.55%, indicating a sharp sell-off after reaching record highs, which negatively impacted investor sentiment.
- Tech Sector Retreat: Data service and software stocks plummeted following the release of an automation tool by AI firm Anthropic, with Thomson Reuters and EPAM Systems down over 15% and 13% respectively, reflecting a loss of confidence in tech stocks.
- Precious Metals Rally: Gold prices surged over 6% and silver over 8%, leading to gains in mining stocks, with Hecla Mining and Freeport McMoRan rising more than 8% and 6% respectively, indicating increased demand for safe-haven assets.
- Economic Outlook Improvement: Richmond Fed President noted an improving US economic outlook despite ongoing risks, with markets focusing on upcoming economic data and the passage of a spending bill to gauge future economic trends.
- Financial Performance: ADM reported adjusted earnings per share of $0.87 for Q4 2025 and $3.43 for the full year, demonstrating robust performance with a total segment operating profit of $821 million, reflecting strong cash flow management amid market challenges.
- Cost-Saving Initiatives: The company executed over 20 projects as part of portfolio optimization, resulting in approximately $200 million in cost savings, while also restoring Decatur East operations and achieving the lowest injury rate in its history, highlighting a dual focus on safety and efficiency.
- Future Outlook: ADM's outlook for adjusted EPS in 2026 is projected between $3.60 and $4.25, indicating confidence in future growth despite ongoing market fluidity and policy uncertainties, emphasizing disciplined capital allocation strategies.
- Strategic Focus: The company is concentrating on five key areas including enhanced nutrition, biosolutions, precision fermentation, and decarbonization, introducing innovations like allergen-free pea protein, aiming to capture market opportunities and drive long-term growth through sustained investment.
- Divergent Market Performance: The S&P 500 Index fell by 0.35% today while the Dow Jones Industrial Average rose by 0.13%, indicating a split in market sentiment, particularly as weakness in tech stocks weighed on overall performance.
- Tech Stock Retreat: Following the release of an automation tool for lawyers by AI firm Anthropic, data service and software stocks retreated, with Thomson Reuters down over 17% and Intuit and FactSet both down more than 9%, reflecting a decline in investor confidence in the tech sector.
- Mining Stocks Surge: Gold prices rose by over 6% and silver prices soared by more than 13%, driving mining stocks higher, with Freeport McMoRan and Hecla Mining both up over 6%, indicating a rebound in investor demand for precious metals.
- Economic Data Impact: Despite strong US manufacturing data, the 10-year T-note yield climbed to a 1.5-week high of 4.30%, dampening expectations for further Fed rate cuts and leading to cautious investor sentiment that pressured some stocks.
- Divergence in Tech Stocks: Despite strong earnings from Palantir Technologies and Teradyne boosting tech stocks, Palantir's shares rose over 5% after forecasting 2026 revenue significantly above expectations at $7.18 to $7.20 billion, well above the consensus of $6.27 billion.
- Precious Metals Rebound: Gold prices increased by more than 6% and silver surged over 13%, leading mining stocks like Freeport McMoRan and Hecla Mining to rise by more than 5% and 4% respectively, indicating a recovery in market demand for precious metals.
- PayPal's Stock Plunge: PayPal Holdings saw its stock drop over 18%, significantly weighing on the Nasdaq 100, as its Q4 net revenue of $8.68 billion fell short of the $8.79 billion consensus, coupled with a CEO change that may impact investor confidence.
- Economic Data Impacting Market Sentiment: While signs of an improving US economic outlook coexist with risks from concentrated hiring in a few sectors and inflation above the Fed's target, the market's expectations for future rate hikes have diminished, with the 10-year T-note yield rising to 4.3%, heightening investor unease.
- Earnings Highlight: Archer-Daniels-Midland reported fourth-quarter adjusted earnings per share of 87 cents, surpassing the analyst consensus estimate of 80 cents, indicating resilience in profitability despite challenges.
- Revenue Decline: Despite the earnings beat, quarterly sales of $18.556 billion fell short of the market expectation of $21.120 billion, reflecting a volatile demand backdrop.
- Segment Performance: The Ag Services and Oilseeds segment saw revenues drop from $16.874 billion last year to $14.012 billion, with operating profit down 31%, highlighting the impact of trade turbulence on business operations.
- Future Outlook: The company forecasts fiscal 2026 adjusted earnings between $3.60 and $4.25 per share, below the consensus estimate of $4.24, indicating ongoing uncertainty in the operating environment.











