Are Investors Undervaluing Adecoagro (AGRO) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Adecoagro (AGRO) is a stock many investors are watching right now. AGRO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.73, which compares to its industry's average of 11.22. AGRO's Forward P/E has been as high as 12.97 and as low as 6.69, with a median of 10.25, all within the past year.
Finally, investors will want to recognize that AGRO has a P/CF ratio of 3.17. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.58. Over the past 52 weeks, AGRO's P/CF has been as high as 3.47 and as low as 2, with a median of 2.59.
Value investors will likely look at more than just these metrics, but the above data helps show that Adecoagro is likely undervalued currently. And when considering the strength of its earnings outlook, AGRO sticks out at as one of the market's strongest value stocks.
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Adecoagro S.A. (AGRO) : Free Stock Analysis Report
