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Adecoagro (AGRO) Ascends While Market Falls: Some Facts to Note

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In the latest close session, Adecoagro (AGRO - Free Report) was up +2.93% at $9.12. The stock outperformed the S&P 500, which registered a daily loss of 0.49%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq lost 0.65%.

Prior to today's trading, shares of the producer of agricultural products and renewable energy had lost 4.73% lagged the Consumer Staples sector's loss of 4.12% and the S&P 500's gain of 0.96%.

The upcoming earnings release of Adecoagro will be of great interest to investors.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.58 per share and a revenue of $1.35 billion, representing changes of -71.29% and -11.27%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Adecoagro. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 30.54% lower within the past month. At present, Adecoagro boasts a Zacks Rank of #4 (Sell).

In the context of valuation, Adecoagro is at present trading with a Forward P/E ratio of 15.28. Its industry sports an average Forward P/E of 15.48, so one might conclude that Adecoagro is trading at a discount comparatively.

The Agriculture - Operations industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 191, placing it within the bottom 23% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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