Trade-Ideas LLC identified AGCO ( AGCO) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified AGCO as such a stock due to the following factors:

  • AGCO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $48.3 million.
  • AGCO has traded 943,660 shares today.
  • AGCO traded in a range 290.1% of the normal price range with a price range of $3.32.
  • AGCO traded below its daily resistance level (quality: 1 day, meaning that the stock is crossing a resistance level set by the last 1 calendar day. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on AGCO:

AGCO Corporation manufactures and distributes agricultural equipment and related replacement parts worldwide. The stock currently has a dividend yield of 1%. AGCO has a PE ratio of 17. Currently there is 1 analyst that rates AGCO a buy, 2 analysts rate it a sell, and 9 rate it a hold.

The average volume for AGCO has been 1.1 million shares per day over the past 30 days. AGCO has a market cap of $4.4 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 0.82 and a short float of 18.6% with 13.86 days to cover. Shares are up 17.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates AGCO as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • The current debt-to-equity ratio, 0.44, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that AGCO's debt-to-equity ratio is low, the quick ratio, which is currently 0.58, displays a potential problem in covering short-term cash needs.
  • 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. In comparison to the other companies in the Machinery industry and the overall market, AGCO CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • AGCO CORP's earnings per share declined by 14.1% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, AGCO CORP reported lower earnings of $3.06 versus $4.34 in the prior year. For the next year, the market is expecting a contraction of 24.2% in earnings ($2.32 versus $3.06).

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