AGCO Corporation’s share price was heavily penalized and is now in an oversold situation near to a solid support area.

The company valuation is low with an estimated P/E ratio of 9 for 2014 and 2015. Enterprise value is equal to 0.5 for the two next fiscal year, corresponding to a low ratio as well.

Technically, the security is in a negative configuration in the short term as the bearish trend of 20-day moving average, currently around USD 54 shows. Nevertheless, the stock seems in an oversold situation, near to its USD 50.45 support and an uptrend line in daily data. This level might stop the bearish trend in the short term and give arguments to aim the 20 day-moving average.

In consequence, investors should buy the stock at the current level in order to aim USD 54/54.5 area with a stop-loss below USD 50.