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 0.4%. By the end of trading, AGCO fell $0.99 (-1.8%) to $55.56 on average volume. Throughout the day, 882,080 shares of AGCO exchanged hands as compared to its average daily volume of 1,165,100 shares. The stock ranged in price between $55.23-$55.96 after having opened the day at $55.79 as compared to the previous trading day's close of $56.55. Other companies within the Industrial industry that declined today were: ExOne ( XONE), down 15.3%, Hardinge ( HDNG), down 7.0%, Exide Technologies ( XIDE), down 7.0% and Zoltek Companies ( ZOLT), down 6.5%.
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AGCO Corporation manufactures and distributes agricultural equipment and related replacement parts worldwide. AGCO has a market cap of $5.5 billion and is part of the industrial goods sector. The company has a P/E ratio of 10.7, below the S&P 500 P/E ratio of 17.7. Shares are up 15.1% year to date as of the close of trading on Tuesday. Currently there are 5 analysts that rate AGCO a buy, 1 analyst rates it a sell, and 6 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, attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Intellicheck Mobilisa ( IDN), down 15.2%, Altair Nanotechnologies ( ALTI), down 10.8%, ZBB Energy Corporation ( ZBB), down 10.7% and Energy Recovery ( ERII), down 8.6% , were all gainers within the industrial industry with General Electric ( GE) 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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