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In my ongoing efforts to find hidden gems in the investing world, I stumbled upon Adecoagro S.A. (NYSE: AGRO). AGRO is a South American agricultural and industrial company with a low valuation and strong expected growth for 2024. The company is poised to benefit from steady growth in its markets.

Adecoagro's strategies and competitive advantages should help drive growth within these markets. AGRO has a low-cost production model where the company grows its products in areas where it has advantages with productive growing conditions. The company also uses advanced technology with efficient agricultural equipment for its farming and harvesting activities to maximize productivity.

Adecoagro's Q3 2023 Highlights (Adecoagro Q3 2023 Earnings Presentation)

The slide above from AGRO's Q3 earnings presentation illustrates the top and bottom-line gains that the company achieved in Q3 and for the first nine months of 2023. We can also see how significant the Sugar, Ethanol, and Energy segment is for AGRO. The company derived 74% of adjusted EBITDA from the Sugar, Ethanol, and Energy segment in Q3.

Adecoagro's Growth Outlook

Adecoagro's main businesses of farming and sugarcane production are expected to experience long-term steady growth. The company's Farming segment produces crops such as corn, wheat, oilseeds, soybeans, etc. AGRO is also a leading producer in South America of other agricultural products such as rice and milk.

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