(SYT - Analyst Report
) just spiked to a new 52-week high as elevated grain prices drive demand for agricultural resources. With estimates on the rise and a bullish growth projection, this Zacks #1 rank stock offers plenty of upward momentum.
Syngenta AG operates as an agribusiness, primarily engaged in developing and selling seeds and crop protection nutrients. The company was founded in 1999 and has a market cap of $31 billion.
We got an update on Syngenta's business on Feb 9 when the company reported strong FY 2010 results that came in ahead of expectations.
Revenue for the year was up 6% from last year to $11.6 billion. Operating income came in at $1.97 billion, in line with last year.
The company also used the quarter to announce that it will invest $850 million in buying shares back in 2011.
Syngenta also noted that it continues to see strong demand and results from emerging markets, which now account for almost 50% of the company's total sales.
The company also looked strong in a number of key areas, generating free cash flow of $1.1 billion during the quarter and increasing its EBITDA margin to 21.5% from 17.8% ten years ago.
We saw some decent movement in estimates off the good quarter, with the current year gaining 15 cents to $3.80. The next-year estimate is up 56 cents in the same time $4.52, a bullish 19%.
But in spite of the recent gains, SYT still looks reasonably valued trading with a PEG Ratio (PE?Growth) of .93, below the traditional benchmark of 1 for value.
On the chart, SYT has been strong for the last few months, recently hitting a new 52-week high on the heels of the strong 2010 results. Look for support from the long-term trend on any weakness, take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.