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 has traded 73.3284000000000020236257114447653293609619140625 options contracts today.
  • AGRO is making at least a new 3-day high.
  • AGRO is mentioned 0.45 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 363,800 shares per day over the past 30 days. Adecoagro has a market cap of $1.3 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 1.59 and a short float of 1% with 1.45 days to cover. Shares are up 33.3% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Adecoagro as a hold. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

Highlights from the ratings report include:
  • ADECOAGRO SA has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. 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 ($0.36 versus $0.01).
  • AGRO, with its decline in revenue, underperformed when compared the industry average of 1.5%. Since the same quarter one year prior, revenues fell by 15.9%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • 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, despite the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry, implying reduced upside potential.
  • The gross profit margin for ADECOAGRO SA is currently lower than what is desirable, coming in at 29.49%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.41% significantly trails the industry average.
  • Net operating cash flow has significantly decreased to $8.44 million or 75.74% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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