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Agco (AGCO) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Agco (AGCO - Free Report) closed at $95.20, marking a -1.41% move from the previous day. This change lagged the S&P 500's 0.36% gain on the day. At the same time, the Dow added 0.23%, and the tech-heavy Nasdaq lost 0.1%.

Coming into today, shares of the farm equipment maker had lost 27.44% in the past month. In that same time, the Industrial Products sector lost 12.6%, while the S&P 500 lost 6.59%.

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 $2.44 per share. This would mark a year-over-year decline of 15.28%. Meanwhile, our latest consensus estimate is calling for revenue of $3.12 billion, up 8.5% from the prior-year quarter.

AGCO's full-year Zacks Consensus Estimates are calling for earnings of $11.87 per share and revenue of $12.58 billion. These results would represent year-over-year changes of +14.35% and +12.99%, respectively.

Any recent changes to analyst estimates for Agco should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.13% lower within the past month. Agco is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Agco has a Forward P/E ratio of 8.14 right now. This represents a discount compared to its industry's average Forward P/E of 12.55.

We can also see that AGCO currently has a PEG ratio of 0.81. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Manufacturing - Farm Equipment was holding an average PEG ratio of 0.96 at yesterday's closing price.

The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 28, which puts it in the top 12% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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