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This Top Industrial Products Stock is a #1 (Strong Buy): Why It Should Be on Your Radar

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Whether you're a growth, value, income, or momentum-focused investor, building a successful investment portfolio takes skill, research, and a little bit of luck.

Should You Buy #1 (Strong Buy)-Ranked Agco (AGCO) for Your Portfolio?

Agco was upgraded to the Zacks Rank #1 list on March 26, 2022. The Zacks Rank is a unique stock-rating model that helps you take advantage of earnings estimate revision trends and provides a way to get into stocks highly sought after by institutional investors.

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.

Eight analysts revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $1.13 to $11.64 per share. AGCO boasts an average earnings surprise of 56.7%.

Analysts are expecting earnings to grow 12.1% for the current fiscal year, with revenue forecasted to rise 10.4%.

AGCO has been moving higher over the past four weeks as well, up 25% compared to the S&P 500's gain of 3.8%.

Bottom Line

With a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, Agco could be just the stock to help your portfolio generate returns that could fund your retirement, your kids' college tuition, or your short- and long-term savings goals.

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