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 $4.0 million.
  • AGRO has traded 66.20900000000000318323145620524883270263671875 options contracts today.
  • AGRO is making at least a new 3-day high.
  • AGRO is mentioned 0.63 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, engages in farming, energy production, and land transformation activities. It operates through Farming; Sugar, Ethanol and Energy; and Land Transformation businesses. Currently there are 2 analysts that rate Adecoagro a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Adecoagro has been 183,000 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 1.10 and a short float of 0.7% with 1.14 days to cover. Shares are up 26.1% year-to-date as of the close of trading on Wednesday.

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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 good cash flow from operations, expanding profit margins and notable return on equity. 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:
  • Net operating cash flow has significantly increased by 139.60% to $5.69 million when compared to the same quarter last year. In addition, ADECOAGRO SA has also vastly surpassed the industry average cash flow growth rate of 4.30%.
  • ADECOAGRO SA reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ADECOAGRO SA turned its bottom line around by earning $0.01 versus -$0.24 in the prior year. This year, the market expects an improvement in earnings ($0.34 versus $0.01).
  • 46.22% is the gross profit margin for ADECOAGRO SA which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 0.84% trails the industry average.
  • 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.
  • The debt-to-equity ratio of 1.16 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, AGRO maintains a poor quick ratio of 0.87, which illustrates the inability to avoid short-term cash problems.

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