That anxiety mounting in the agricultural sector back in February? Turns out it was pretty well-founded.
In fact, the tractor titan expects global demand to soften for the remainder of 2009. AGCO has responded fairly aggressively to the slowdown, with a 17% year-to-date workforce reduction along with other expense cuts.
For the near term, Ag looks like kind of a drag, but if you asked industry-straddling CNH or Trimble, they'd probably bet the farm on a quicker return to robust revenue in this space than in the construction sector. While sentiment has slumped, agricultural fundamentals themselves have held up reasonably well. For that, among other reasons, I think Fools should certainly consider the agricultural complex in their quest for value today.
Garmin is a Global Gains recommendation. This world-traveling subscriber service sports several agricultural stocks on the scorecard, one of which is a multi-bagger that our advisors believe has plenty of room to run. Check out all active recommendations with a free 30-day trial.