Adecoagro (AGRO) Laps the Stock Market: Here's Why

In the latest trading session, Adecoagro (AGRO) closed at $9.17, marking a +1.44% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.8%. Meanwhile, the Dow gained 0.94%, and the Nasdaq, a tech-heavy index, added 0.97%.

Shares of the producer of agricultural products and renewable energy witnessed a loss of 4.94% over the previous month, trailing the performance of the Consumer Staples sector with its loss of 1.96%, and the S&P 500's gain of 5.12%.

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The investment community will be paying close attention to the earnings performance of Adecoagro in its upcoming release.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.84 per share and a revenue of $1.39 billion, representing changes of -58.42% and -8.47%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Adecoagro. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Adecoagro holds a Zacks Rank of #4 (Sell).

Looking at its valuation, Adecoagro is holding a Forward P/E ratio of 10.83. This expresses a discount compared to the average Forward P/E of 14.24 of its industry.

The Agriculture - Operations industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 223, putting it in the bottom 10% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow AGRO in the coming trading sessions, be sure to utilize Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research