Trade-Ideas LLC identified AGCO ( AGCO) as a weak on high relative volume 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 $45.9 million.
  • AGCO has traded 416,504 shares today.
  • AGCO is trading at 2.64 times the normal volume for the stock at this time of day.
  • AGCO is trading at a new low 3.02% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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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 18. Currently there is 1 analyst that rates AGCO a buy, 2 analysts rate it a sell, and 8 rate it a hold.

The average volume for AGCO has been 972,900 shares per day over the past 30 days. AGCO has a market cap of $4.2 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 0.81 and a short float of 18% with 13.45 days to cover. Shares are up 12.4% year-to-date as of the close of trading on Thursday.

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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, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • After a year of stock price fluctuations, the net result is that AGCO's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • AGCO CORP 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. 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 23.2% in earnings ($2.35 versus $3.06).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Machinery industry. The net income has significantly decreased by 74.1% when compared to the same quarter one year ago, falling from $30.10 million to $7.80 million.

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