Back to top

Image: Bigstock

Why Adecoagro (AGRO) Outpaced the Stock Market Today

Read MoreHide Full Article

Adecoagro (AGRO - Free Report) closed at $9.54 in the latest trading session, marking a +1.71% move from the prior day. This move outpaced the S&P 500's daily gain of 0.54%. On the other hand, the Dow registered a gain of 0.52%, and the technology-centric Nasdaq increased by 0.74%.

Heading into today, shares of the producer of agricultural products and renewable energy had lost 1.26% over the past month, outpacing the Consumer Staples sector's loss of 1.49% and lagging the S&P 500's gain of 4.2%.

The investment community will be paying close attention to the earnings performance of Adecoagro in its upcoming release.

For the full year, the Zacks Consensus Estimates project earnings of $0.58 per share and a revenue of $1.35 billion, demonstrating changes of -71.29% and -11.27%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Adecoagro. 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 business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 30.54% lower. Adecoagro is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, Adecoagro is holding a Forward P/E ratio of 16.17. This expresses no noticeable deviation compared to the average Forward P/E of 16.17 of its industry.

The Agriculture - Operations industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 212, finds itself in the bottom 15% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


See More Zacks Research for These Tickers


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


Adecoagro S.A. (AGRO) - free report >>

Published in