AGCO Corp (AGCO): Today's Featured Industrial Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

AGCO ( AGCO) pushed the Industrial industry lower today making it today's featured Industrial laggard. The industry as a whole closed the day up 0.9%. By the end of trading, AGCO fell $2.06 (-4.3%) to $45.51 on heavy volume. Throughout the day, 2.8 million shares of AGCO exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in price between $44.20-$46.26 after having opened the day at $45.80 as compared to the previous trading day's close of $47.57. Other companies within the Industrial industry that declined today were: China BAK Battery ( CBAK), down 23%, Altair Nanotechnologies ( ALTI), down 14%, Wowjoint Holdings ( BWOW), down 13.3%, and UQM Technologies ( UQM), down 9%.
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AGCO Corporation manufactures and distributes agricultural equipment and related replacement parts worldwide. AGCO has a market cap of $4.62 billion and is part of the industrial goods sector. The company has a P/E ratio of 6.7, equal to the average industrial industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 10.7% year to date as of the close of trading on Tuesday. Currently there are six analysts that rate AGCO a buy, one analyst rates it a sell, and six rate it a hold.

TheStreet Ratings rates AGCO as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, compelling growth in net income, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Generac Holdings ( GNRC), up 20%, Lincoln Electric Holdings ( LECO), up 11.2%, Kadant ( KAI), up 10.3%, and H&E Equipment Services ( HEES), up 10.3%, were all gainers within the industrial industry with Illinois Tool Works ( ITW) being today's featured industrial industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial industry could consider SPDR Dow Jones Industrial Average ( DIA) while those bearish on the industrial industry could consider ProShares UltraShort Industrials ( SIJ).

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