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Adecoagro (AGRO) Stock Sinks As Market Gains: Here's Why

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In the latest close session, Adecoagro (AGRO - Free Report) was down 1.35% at $8.05. The stock's change was less than the S&P 500's daily gain of 0.48%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 0.94%.

The producer of agricultural products and renewable energy's stock has dropped by 3.43% in the past month, falling short of the Consumer Staples sector's loss of 1.66% and the S&P 500's gain of 2.46%.

Analysts and investors alike will be keeping a close eye on the performance of Adecoagro in its upcoming earnings disclosure.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.4 per share and a revenue of $1.35 billion, indicating changes of -80.2% and -11.27%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Adecoagro. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 past month, there's been no change in the Zacks Consensus EPS estimate. Adecoagro is currently a Zacks Rank #4 (Sell).

Valuation is also important, so investors should note that Adecoagro has a Forward P/E ratio of 20.66 right now. This represents a premium compared to its industry average Forward P/E of 15.84.

The Agriculture - Operations industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 36% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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