Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Adecoagro ( AGRO) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Adecoagro as such a stock due to the following factors:

  • AGRO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.9 million.
  • AGRO is making at least a new 3-day high.
  • AGRO is mentioned 0.90 times per day on StockTwits.
  • AGRO has not yet been mentioned on StockTwits today.
  • AGRO is currently in the upper 20% of its 1-year range.
  • AGRO is in the upper 35% of its 20-day range.
  • AGRO is in the upper 45% of its 5-day range.
  • AGRO is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on AGRO:

Adecoagro S.A., an agricultural company, is engaged in the agricultural, manufacturing, and land transformation activities in South America. The company operates through Crops; Rice; Dairy; Coffee; Cattle; Sugar, Ethanol, and Energy; and Land Transformation segments. Currently there is 1 analyst that rates Adecoagro a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Adecoagro has been 236,500 shares per day over the past 30 days. Adecoagro has a market cap of $1.2 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 1.13 and a short float of 0.9% with 1.28 days to cover. Shares are up 22.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Adecoagro as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 10.0%. Since the same quarter one year prior, revenues rose by 14.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 286.2% when compared to the same quarter one year prior, rising from -$6.10 million to $11.36 million.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
  • AGRO's debt-to-equity ratio of 0.96 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.02 is sturdy.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Food Products industry and the overall market, ADECOAGRO SA's return on equity significantly trails that of both the industry average and the S&P 500.

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