Adecoagro (AGRO) Stock Sinks As Market Gains: Here's Why

In the latest market close, Adecoagro (AGRO) reached $11.50, with a -0.35% movement compared to the previous day. The stock's change was more than the S&P 500's daily loss of 1.86%. Elsewhere, the Dow saw a downswing of 0.9%, while the tech-heavy Nasdaq depreciated by 2.76%.

The producer of agricultural products and renewable energy's shares have seen an increase of 1.5% over the last month, surpassing the Consumer Staples sector's loss of 4.48% and the S&P 500's gain of 1.01%.

The investment community will be paying close attention to the earnings performance of Adecoagro in its upcoming release. The company is slated to reveal its earnings on November 13, 2024.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.68 per share and revenue of $1.49 billion. These totals would mark changes of +15.86% and +14.41%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates 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 company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Adecoagro possesses a Zacks Rank of #3 (Hold).

Digging into valuation, Adecoagro currently has a Forward P/E ratio of 6.87. For comparison, its industry has an average Forward P/E of 22.65, which means Adecoagro is trading at a discount to the group.

We can additionally observe that AGRO currently boasts a PEG ratio of 1.11. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Agriculture - Operations industry held an average PEG ratio of 1.77.

The Agriculture - Operations industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 176, which puts it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Adecoagro (AGRO) closed the latest trading day at $11.77, indicating a +0.77% change from the previous session's end. This change outpaced the S&P 500's 0.03% loss on the day. Elsewhere, the Dow lost 0.61%, while the tech-heavy Nasdaq added 0.56%.

Prior to today's trading, shares of the producer of agricultural products and renewable energy had gained 0.6% over the past month. This has outpaced the Consumer Staples sector's loss of 2.17% and lagged the S&P 500's gain of 1.39% in that time.

The investment community will be closely monitoring the performance of Adecoagro in its forthcoming earnings report. The company is scheduled to release its earnings on November 13, 2024.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.68 per share and revenue of $1.49 billion, indicating changes of +15.86% and +14.41%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Adecoagro. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 8.39% higher. Adecoagro presently features a Zacks Rank of #3 (Hold).

In the context of valuation, Adecoagro is at present trading with a Forward P/E ratio of 6.95. For comparison, its industry has an average Forward P/E of 22.8, which means Adecoagro is trading at a discount to the group.

We can additionally observe that AGRO currently boasts a PEG ratio of 1.12. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Agriculture - Operations stocks are, on average, holding a PEG ratio of 1.75 based on yesterday's closing prices.

The Agriculture - Operations industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 148, placing it within the bottom 42% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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