Are Investors Undervaluing Adecoagro (AGRO) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Adecoagro (AGRO) is a stock many investors are watching right now. AGRO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.44 right now. For comparison, its industry sports an average P/E of 11.82. Over the past 52 weeks, AGRO's Forward P/E has been as high as 12.97 and as low as 6.51, with a median of 10.11.
Investors should also recognize that AGRO has a P/B ratio of 0.87. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.03. Over the past year, AGRO's P/B has been as high as 1.03 and as low as 0.68, with a median of 0.79.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AGRO has a P/S ratio of 0.74. This compares to its industry's average P/S of 0.84.
Finally, investors should note that AGRO has a P/CF ratio of 3.04. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.26. AGRO's P/CF has been as high as 3.58 and as low as 2, with a median of 2.41, all within the past year.
These are just a handful of the figures considered in Adecoagro's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AGRO is an impressive value stock right now.
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Adecoagro S.A. (AGRO) : Free Stock Analysis Report
