Farmer Mac: Q1 Was Another Boring Quarter. This Boring Stock Should Be 50% Higher

Gary J. Gordon
3.06K Followers

Summary

  • What’s behind Q1 earnings, which grew by 28% YoY.
  • My new $11.60 EPS estimate for next year.
  • A moderate 15 P/E for this steady 8-10% grower suggests a $175 price next year, up more than 50%.
Agricultural Landscape with Farm Barn, Aerial View
Photo by Bim/E+ via Getty Images

Farmer Mac (NYSE:AGM) reported Q1 operating EPS of $2.39, up from $1.87 the prior year. That’s a 28% increase if you don’t have your calculator handy. With minor exceptions, the Q1 earnings report was dull as a baseball game during a pitching change. Dull as the day’s

This article was written by

3.06K Followers
Gary Gordon’s career was on Wall Street, where he was a stock analyst covering the housing, mortgage and consumer finance industries. He also served as a U.S. investment strategist and as a portfolio manager. The bulk of his work career was at PaineWebber and UBS. He is now retired. Mr. Gordon is an adjunct professor at Mercy College in New York. He teaches economics on campus and math at prisons (Sing Sing and Taconic in New York). He also presents financial literacy seminars to adults and students. He is on the Board of Hudson Link (college education for incarcerated men and women) and the Baron de Hirsch Fund. Mr. Gordon is married with two young adult children. He has degrees from Colgate University (BA '74, philosophy) and The Wharton School (MBA '77, finance).

Analyst’s Disclosure:I am/we are long AG. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About AGM Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on AGM

Related Stocks

SymbolLast Price% Chg
AGM
--