AGCO Corporation (AGCO), Alamo Group, Inc. (ALG): Do These Machinery Stocks Have Value to Dig Up?

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Low-priced but not cheap

CNH Global NV (NYSE:CNH) operates in nearly every country on earth, which gives it a huge amount of potential markets and room to expand. With 11,500 dealers of the full line, this construction and agricultural machinery company has plenty of avenues for its trailing $20.5 billion in sales. CNH Global NV (NYSE:CNH) also has reasonably high profit margins at 5.8%. Despite this, the company is only trading at around 8 times earnings and 1.1 times its book value, which is a pretty decent deal overall.

On the whole, the only major concerns that keep CNH Global NV (NYSE:CNH) from being perfect are its lack of a dividend and the overall global economic outlook in the wake of the Great Recession. As the economy picks back up and construction resumes in full force, CNH Global NV (NYSE:CNH) has definite possibilities for solid growth.

On the whole, I would recommend taking a good look at CNH Global NV (NYSE:CNH) as a solid candidate for your portfolio.

The Foolish bottom line

Construction and farming machinery stocks have taken some damage lately because of the recession, but on the whole they haven’t deserved the battering they’ve gotten. You can find some truly great deals amidst this sector, and many of these options are solid companies.


Chris Hodge has no position in any stocks mentioned. The Motley Fool owns shares of Alamo Group.
Chris is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Do These Machinery Stocks Have Value to Dig Up? originally appeared on Fool.com is written by Chris Hodge.

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