Should Value Investors Buy Adecoagro (AGRO) Stock?

AGRO

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Adecoagro (AGRO - Free Report) . AGRO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.72. This compares to its industry's average Forward P/E of 10.64. Over the last 12 months, AGRO's Forward P/E has been as high as 12.97 and as low as 6.69, with a median of 10.25.

Finally, investors should note that AGRO has a P/CF ratio of 3.22. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. AGRO's current P/CF looks attractive when compared to its industry's average P/CF of 7.14. AGRO's P/CF has been as high as 3.47 and as low as 2, with a median of 2.71, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Adecoagro is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AGRO feels like a great value stock at the moment.

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