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Agco (AGCO) Gains But Lags Market: What You Should Know

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In the latest trading session, Agco (AGCO - Free Report) closed at $107.81, marking a +0.21% move from the previous day. This move lagged the S&P 500's daily gain of 0.22%. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, added 0.22%.

Coming into today, shares of the farm equipment maker had lost 3.85% in the past month. In that same time, the Industrial Products sector lost 11.34%, while the S&P 500 lost 10.02%.

Wall Street will be looking for positivity from Agco as it approaches its next earnings report date. In that report, analysts expect Agco to post earnings of $2.37 per share. This would mark a year-over-year decline of 17.71%. Our most recent consensus estimate is calling for quarterly revenue of $3.1 billion, up 7.83% from the year-ago period.

AGCO's full-year Zacks Consensus Estimates are calling for earnings of $11.86 per share and revenue of $12.58 billion. These results would represent year-over-year changes of +14.26% and +12.95%, respectively.

Investors might also notice recent changes to analyst estimates for Agco. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.2% lower within the past month. Agco is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Agco's current valuation metrics, including its Forward P/E ratio of 9.09. Its industry sports an average Forward P/E of 13.87, so we one might conclude that Agco is trading at a discount comparatively.

Meanwhile, AGCO's PEG ratio is currently 0.9. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AGCO's industry had an average PEG ratio of 1.06 as of yesterday's close.

The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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