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 $3.2 million.
  • AGRO has traded 17.40299999999999869260136620141565799713134765625 options contracts today.
  • AGRO is making at least a new 3-day high.
  • AGRO is mentioned 0.52 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 3 analysts that rate Adecoagro a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Adecoagro has been 451,100 shares per day over the past 30 days. Adecoagro has a market cap of $1.4 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 1.48 and a short float of 1.8% with 3.65 days to cover. Shares are down 6.3% year-to-date as of the close of trading on Monday.

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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 generally higher debt management risk, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, AGRO's share price has jumped by 45.37%, exceeding the performance of the broader market during that same time frame. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • 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 ($0.32 versus $0.01).
  • AGRO, with its decline in revenue, underperformed when compared the industry average of 1.4%. 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.
  • Currently the debt-to-equity ratio of 1.52 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with the unfavorable debt-to-equity ratio, AGRO maintains a poor quick ratio of 1.00, which illustrates the inability to avoid short-term cash problems.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness 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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