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Agco (AGCO) Gains As Market Dips: What You Should Know

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Agco (AGCO) closed the most recent trading day at $91.96, moving +0.01% from the previous trading session. This change outpaced the S&P 500's 0.84% loss on the day. At the same time, the Dow lost 0.69%, and the tech-heavy Nasdaq lost 0.07%.

Coming into today, shares of the farm equipment maker had lost 14.71% in the past month. In that same time, the Industrial Products sector lost 4.16%, while the S&P 500 gained 2.02%.

Agco will be looking to display strength as it nears its next earnings release, which is expected to be July 28, 2022. In that report, analysts expect Agco to post earnings of $2.26 per share. This would mark a year-over-year decline of 21.53%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.02 billion, up 5.03% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.76 per share and revenue of $12.54 billion, which would represent changes of +13.29% and +12.57%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Agco. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.94% lower within the past month. Agco is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Agco has a Forward P/E ratio of 7.82 right now. Its industry sports an average Forward P/E of 12.77, so we one might conclude that Agco is trading at a discount comparatively.

We can also see that AGCO currently has a PEG ratio of 0.83. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Manufacturing - Farm Equipment stocks are, on average, holding a PEG ratio of 0.98 based on yesterday's closing prices.

The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 26, which puts it in the top 11% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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