On Oct 5, Zacks Investment Research upgraded
) to a Zacks Rank #1 (Strong Buy).
AGCO CORP (AGCO): Free Stock Analysis Report
KOMATSU LTD ADR (KMTUY): Get Free Report
KUBOTA CORP ADR (KUBTY): Get Free Report
LONKING HOLDING (LONKF): Get Free Report
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Why the Upgrade?
AGCO Corporation's share price and earnings estimates have
trended upward following the announcement of its record second
quarter results on Jul 31. AGCO Corporation reported an
impressive second-quarter 2013 with record earnings of $2.15 per
share, up 3% year over year. Earnings were driven by strong
market demand in South America and the Asia Pacific region.
AGCO increased its full-year 2013 earnings per share guidance to
$6.00 from the previous range of $5.50-$5.70. The company also
raised full-year revenue band to $10.8-$11 billion from
$10.5-$10.7 billion. Growth in South America and North America is
expected to be offset by modest declines in Western Europe.
Global industry demand is expected to be relatively flat in 2013
compared with 2012.
This farm equipment manufacturer has an impressive run of
delivering positive earnings surprises in 22 of the last 23
quarters. The long-term earnings per share growth guidance of the
company stands at 9% on the back of 7.5% growth in sales.
AGCO remains committed to its plans of expanding its business in
domestic and international markets. In September, AGCO entered
into a 50-50 joint venture to manufacture and distribute
agricultural equipment and replacement parts in Russia. In late
September, AGCO purchased Johnson System Inc., a leader in
structural steel manufacturing with a focus on the agricultural
industry. AGCO will benefit from Johnson System's experience in
the grain handling business and full line of reputed products and
custom design options that meet the unique and specific needs of
any project. AGCO will also benefit from elevated agricultural
commodity prices in 2013 that will support healthy farm income
and sustain equipment demand.
The Zacks Consensus Estimate for 2013 increased 1% in the last 60
days to $6.13 per share. For 2014, the consensus edged up 0.3% in
the last 60 days to $6.09 per share.
Other Stocks to Consider
Apart from AGCO Corporation, stocks worth considering are
Lonking Holdings Ltd
). While Kubota carries a Zacks Rank #1 (Strong Buy), Lonking and
Komatsu bot retain a Zacks Rank #2 (Buy).