AGCO Corporation (AGCO - Free Report) recently launched an innovative combine harvester — IDEAL — in Breganze, Italy. IDEAL will strengthen AGCO’s global harvesting offering and boost its full line of agricultural solutions.
Notably, farmers harvest in various conditions and each farm has unique requirements for its operation. AGCO’s “Voice of Customer” study, which includes reviews of customers, reveals the requirement of an exclusive combine platform to boost production and feed the rising global population.
The IDEAL combine platform is in sync with AGCO’s commitment to support growers with the latest designs featuring the patented innovations from its Fuse Connected Services division. It will aid the company by saving cost and optimizing supply-chain management.
IDEAL will simplify the complex harvesting operations by providing the efficiency, visibility and comfort which farmers need on the field. This first high-capacity combine, with a narrow body, also offers an automated combine adjustment system and Real Time Crop Flow visualization.
IDEAL will be available under three of AGCO’s core brands — Challenger, Fendt and Massey Ferguson — and will be introduced at Agritechnica in November 2017. The new combine will be rolled out in different markets in 2018. IDEAL will be offered in three different models, which will be available with tires or tracks and also in the ParaLevel version.
AGCO continues to make strategic investments in order to refresh and expand its product lines, upgrade system capabilities and improve factory productivity. The company’s gross and operating margins are likely to improve from the 2016 levels on the back of elevated sales, along with the benefits resulting from its cost-reduction initiatives.
Despite expected escalation in expenses, benefits of increased sales and production, fixed cost-reduction efforts, as well as consistent progress on productivity and purchasing initiatives will fuel AGCO’s growth.
AGCO has outperformed its industry with respect to price performance in a year’s time. The stock has gained 41.1%, while the industry recorded growth of 35.6%.
AGCO currently sports a Zacks Rank #1 (Strong Buy).
Other similarly-ranked stocks in the industrial products sector include Caterpillar Inc. (CAT - Free Report) , Kaiser Aluminum Corporation (KALU - Free Report) and Komatsu Ltd. (KMTUY - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.
Caterpillar has expected long-term earnings growth rate of 9.5%.
Kaiser Aluminum Corporation has expected long-term earnings growth rate of 15%.
Komatsu has expected long-term earnings growth rate of 12.7%.
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