Why Adecoagro (AGRO) Outpaced the Stock Market Today

Zacks
02-11

Adecoagro (AGRO) closed the most recent trading day at $9.75, moving +1.04% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.67%. Meanwhile, the Dow experienced a rise of 0.38%, and the technology-dominated Nasdaq saw an increase of 0.98%.

Prior to today's trading, shares of the producer of agricultural products and renewable energy had lost 1.83% over the past month. This has lagged the Consumer Staples sector's gain of 1.72% and the S&P 500's gain of 2.07% in that time.

Investors will be eagerly watching for the performance of Adecoagro in its upcoming earnings disclosure.

Investors should also pay attention to any latest changes in analyst estimates for Adecoagro. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 19.3% lower. At present, Adecoagro boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Adecoagro is presently trading at a Forward P/E ratio of 7.37. This signifies a discount in comparison to the average Forward P/E of 11.02 for its industry.

It's also important to note that AGRO currently trades at a PEG ratio of 1.28. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Agriculture - Operations industry stood at 1.56 at the close of the market yesterday.

The Agriculture - Operations industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 174, placing it within the bottom 31% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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

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