Should Value Investors Buy Adecoagro (AGRO) Stock?
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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest 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) and an A for Value. The stock holds a P/E ratio of 7.02, while its industry has an average P/E of 11.11. Over the last 12 months, AGRO's Forward P/E has been as high as 12.97 and as low as 6.22, with a median of 10.25.
Finally, our model also underscores that AGRO has a P/CF ratio of 2.75. 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. AGRO's P/CF compares to its industry's average P/CF of 6.98. Within the past 12 months, AGRO's P/CF has been as high as 3.47 and as low as 2, with a median of 2.75.
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
