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Is Adecoagro (AGRO) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Adecoagro (AGRO - Free Report) . AGRO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 12.73, which compares to its industry's average of 15.54. Over the last 12 months, AGRO's Forward P/E has been as high as 22.06 and as low as 8.17, with a median of 12.47.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AGRO has a P/S ratio of 1.17. This compares to its industry's average P/S of 1.29.

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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