Here's Why Agco (AGCO) is a Strong Value Stock
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Agco (AGCO)
Established in 1990, headquartered in Duluth, GA, AGCO Corporation is a leading manufacturer and distributor of agricultural equipment and related replacement parts. The company offers a full product line of farm equipment through a wide network of dealers and distributors across 140 countries. Its full range of agricultural equipment, include tractors (generated 57% of 2020 sales), combines (3%), application equipment including self-propelled sprayers (3%), hay tools and forage equipment, implements and other equipment (12%), and grain storage and protein production systems (10%). Sales of replacement parts generated around 14% of the company’s sales in 2018.
AGCO is a Zacks Rank #2 (Buy) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 10X for the current fiscal year compared to the Manufacturing - Farm Equipment industry's P/E of 13.2X. Additionally, AGCO has a PEG Ratio of 1 and a Price/Cash Flow ratio of 8.4X. Value investors should also note AGCO's Price/Sales ratio of 0.8X.
A company's earnings performance is important for value investors as well. For fiscal 2023, four analysts revised their earnings estimate higher in the last 60 days for AGCO, while the Zacks Consensus Estimate has increased $0.14 to $13.53 per share. AGCO also holds an average earnings surprise of 13.4%.
Investors should take the time to consider AGCO for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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AGCO Corporation (AGCO) : Free Stock Analysis Report
