U.S. markets close in 5 hours
  • S&P 500

    4,179.73
    +9.31 (+0.22%)
     
  • Dow 30

    34,168.80
    +132.81 (+0.39%)
     
  • Nasdaq

    14,028.37
    -10.39 (-0.07%)
     
  • Russell 2000

    2,259.92
    +2.85 (+0.13%)
     
  • Crude Oil

    63.08
    -0.38 (-0.60%)
     
  • Gold

    1,778.50
    +11.70 (+0.66%)
     
  • Silver

    26.08
    +0.11 (+0.43%)
     
  • EUR/USD

    1.1985
    +0.0009 (+0.07%)
     
  • 10-Yr Bond

    1.5830
    +0.0530 (+3.46%)
     
  • GBP/USD

    1.3818
    +0.0034 (+0.25%)
     
  • USD/JPY

    108.8070
    +0.0910 (+0.08%)
     
  • BTC-USD

    61,636.14
    -1,397.45 (-2.22%)
     
  • CMC Crypto 200

    1,374.97
    -16.74 (-1.20%)
     
  • FTSE 100

    7,015.51
    +32.01 (+0.46%)
     
  • Nikkei 225

    29,683.37
    +40.68 (+0.14%)
     

Earnings Estimates Rising for Agco (AGCO): Will It Gain?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Agco (AGCO) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.

Analysts' growing optimism on the earnings prospects of this farm equipment maker is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Agco, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate Revisions

The company is expected to earn $1 per share for the current quarter, which represents a year-over-year change of +6.38%.

The Zacks Consensus Estimate for Agco has increased 12.41% over the last 30 days, as four estimates have gone higher while one has gone lower.

Current-Year Estimate Revisions

For the full year, the earnings estimate of $4.91 per share represents a change of +10.59% from the year-ago number.

There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, six estimates have moved up for Agco versus no negative revisions. This has pushed the consensus estimate 31.64% higher.

Favorable Zacks Rank

Thanks to promising estimate revisions, Agco currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

While strong estimate revisions for Agco have attracted decent investments and pushed the stock 13.7% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
AGCO Corporation (AGCO) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.