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Adecoagro (AGRO) Gains But Lags Market: What You Should Know

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Adecoagro (AGRO) closed at $8.20 in the latest trading session, marking a +1.23% move from the prior day. This change lagged the S&P 500's 1.42% gain on the day. At the same time, the Dow added 0.97%, and the tech-heavy Nasdaq lost 0.07%.

Prior to today's trading, shares of the producer of agricultural products and renewable energy had lost 4.26% over the past month. This has lagged the Consumer Staples sector's gain of 3.23% and the S&P 500's gain of 6.69% in that time.

Wall Street will be looking for positivity from Adecoagro as it approaches its next earnings report date. This is expected to be August 11, 2022.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.38 per share and revenue of $1.4 billion, which would represent changes of -2.13% and +27.17%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Adecoagro. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Adecoagro is currently a Zacks Rank #4 (Sell).

Digging into valuation, Adecoagro currently has a Forward P/E ratio of 5.87. Its industry sports an average Forward P/E of 21.34, so we one might conclude that Adecoagro is trading at a discount comparatively.

The Agriculture - Operations industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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