The rise and fall of the agriculture equipment cycle has gotten plenty
of attention, but I don't think it's all that widely appreciated that AGCO (AGCO) has done reasonably well over that cycle - beating Deere (DE) over the past two years and keeping pace over the last year (and beating CNH Industrial (CNHI)).
More recently, it seems that some on the sell side have favored AGCO as
a "better house in a bad neighborhood" play, but the company is still
facing challenges, with share loss in Brazil and weaker relative
margins, and AGCO's recent guidance was not particularly strong. The
valuation on these shares does look interesting, but investors need to
be aware that they're swimming against the tide right now.
Follow this link for more:
Is AGCO Corp. Washed Out Enough To Own?
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