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AGCO Corporation Hits 52-Week High on Solid Q3 Performance

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Shares of AGCO Corporation (AGCO - Free Report) scaled a fresh 52-week high of $60.56 during trading session on Jan 8, before retracing a bit to close at $59.31.

The company has a market cap of $4.7 billion. Over the past three months, its average volume of shares traded has been approximately 974K. Also, AGCO surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the average positive earnings surprise being 57.51%.

Price Performance

Notably, the stock has gained around 6% in the past three months, while the S&P 500 has lost around 8%. AGCO has also outperformed 4% growth recorded by the industry during the same time frame.


 

Investors are optimistic about this Zacks Rank #3 (Hold) company, backed by AGCO’s solid third-quarter 2018 results and upbeat outlook.

In addition, AGCO has an impressive VGM Score of A. Here, V stands for Value, G for Growth and M for Momentum, and the score is a weighted combination of these three scores. Such a score eliminates the negative aspects of stocks and selects winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM Score.

Our research shows that stocks with Style Scores of A or B when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 offer the best investment opportunities.

What Led to the 52-Week High?

AGCO’s shares have gained around 11%, since the company reported third-quarter results on Oct 30, 2018. Its adjusted earnings and revenues improved on a year-over-year basis in the third quarter. The company’s results were driven by price increases and focus on cost control.

AGCO Corporation Price, Consensus and EPS Surprise

 

AGCO Corporation Price, Consensus and EPS Surprise | AGCO Corporation Quote

For 2018, AGCO has reaffirmed its net sales outlook of $9.3 billion, on the back of improved sales and volumes, and positive pricing along with acquisitions and foreign currency-translation impact. The guidance reflects year-over-year growth of 12%.

AGCO also raised its 2018 adjusted earnings per share guidance to around $3.75 from $3.70. It expects gross and operating margin improvement from 2017 levels on higher net sales and benefits from cost-reduction initiatives, partially offset by elevated engineering expenses and higher material costs.

For 2018, AGCO is targeting to increase total production by approximately 6% year over year. AGCO projects that industry retail tractor sales will increase moderately in 2018, with improved retail sales in the row crop segment and flat retail sales of small tractors compared to last year.

Stocks to Consider

Some better-ranked stocks in the same space include Ituran Location and Control Ltd. (ITRN - Free Report) , Bemis Company, Inc. and Heritage-Crystal Clean, Inc. . While Ituran Location sports a Zacks Rank #1, Bemis and Heritage-Crystal carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ituran Location has long-term earnings growth rate of 16%. Its shares have gained 3% over the past three months.

Bemis has long-term earnings growth rate of 7.3%. The stock has rallied 3% over the past three months.

Heritage-Crystal has long-term earnings growth rate of 15%. The company’s shares have gained 23% over the past three months.

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