Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Agco (AGCO - Free Report) closed at $136.42, marking a +1.06% move from the previous day. This move outpaced the S&P 500's daily gain of 1.04%. Elsewhere, the Dow gained 0.58%, while the tech-heavy Nasdaq added 2.52%.

Coming into today, shares of the farm equipment maker had gained 12.79% in the past month. In that same time, the Industrial Products sector gained 5.45%, while the S&P 500 lost 0.15%.

Wall Street will be looking for positivity from AGCO as it approaches its next earnings report date. On that day, AGCO is projected to report earnings of $1.09 per share, which would represent year-over-year growth of 26.74%. Our most recent consensus estimate is calling for quarterly revenue of $2.2 billion, up 13.84% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.29 per share and revenue of $10.25 billion, which would represent changes of +29.95% and +11.99%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for AGCO. Recent revisions tend to reflect the latest 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.09% higher. AGCO is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, AGCO currently has a Forward P/E ratio of 18.51. This represents a discount compared to its industry's average Forward P/E of 21.99.

We can also see that AGCO currently has a PEG ratio of 1.25. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Manufacturing - Farm Equipment stocks are, on average, holding a PEG ratio of 1.73 based on yesterday's closing prices.

The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 29, putting it in the top 12% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


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


AGCO Corporation (AGCO) - free report >>

Published in