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Are Investors Undervaluing Adecoagro (AGRO) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Adecoagro (AGRO - Free Report) . AGRO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.98, which compares to its industry's average of 11.75. Over the past 52 weeks, AGRO's Forward P/E has been as high as 12.97 and as low as 6.22, with a median of 10.25.

Finally, investors should note that AGRO has a P/CF ratio of 2.73. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. AGRO's P/CF compares to its industry's average P/CF of 7.19. Over the past 52 weeks, AGRO's P/CF has been as high as 3.47 and as low as 2, with a median of 2.76.

These are only a few of the key metrics included in Adecoagro's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AGRO looks like an impressive value stock at the moment.


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