Back to top

Image: Bigstock

Adecoagro (AGRO) Flat As Market Gains: What You Should Know

Read MoreHide Full Article

The most recent trading session ended with Adecoagro (AGRO - Free Report) standing at $11.14, reflecting no shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 1.2%. On the other hand, the Dow registered a gain of 0.69%, and the technology-centric Nasdaq increased by 1.59%.

Prior to today's trading, shares of the producer of agricultural products and renewable energy had gained 3.24% over the past month. This has outpaced the Consumer Staples sector's loss of 1.51% and the S&P 500's loss of 4.16% in that time.

Market participants will be closely following the financial results of Adecoagro in its upcoming release.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.69 per share and revenue of $1.36 billion, which would represent changes of +16.55% and +4.53%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Adecoagro. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.66% higher within the past month. Currently, Adecoagro is carrying a Zacks Rank of #1 (Strong Buy).

Investors should also note Adecoagro's current valuation metrics, including its Forward P/E ratio of 6.61. For comparison, its industry has an average Forward P/E of 22.63, which means Adecoagro is trading at a discount to the group.

The Agriculture - Operations industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 190, finds itself in the bottom 25% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Adecoagro S.A. (AGRO) - free report >>

Published in