3 Reasons ALG is Risky and 1 Stock to Buy Instead

Adam Hejl Tue, September 29, 2026 at 1:04 PM EDT 3 min read **

• ^GSPC
• ALG

3 Reasons ALG is Risky and 1 Stock to Buy Instead Alamo currently trades at $157.92 per share and has shown little upside over the past six months, posting a small loss of 3.9%. The stock also fell short of the S&P 500's 22.1% gain during that period.

Is there a buying opportunity in Alamo, or does it present a risk to your portfolio? Check out our in-depth research report to see what our analysts have to say, it's free.

Why Is Alamo Not Exciting?

We're passing on Alamo for now. Here are three reasons why there are better opportunities than ALG, plus one stock we'd rather own.

1. Long-Term Revenue Growth Disappoints

Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Regrettably, Alamo's sales grew at a mediocre 6% compounded annual growth rate over the last five years. This fell short of our benchmark for the industrials sector.

Alamo Quarterly Revenue

2. Projected Revenue Growth Is Slim

Forecasted revenues by Wall Street analysts signal a company's potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.

Over the next 12 months, sell-side analysts expect Alamo's revenue to rise by 4.2%. While this projection implies its newer products and services will fuel better top-line performance, it is still below the sector average.

3. EPS Took a Dip Over the Last Two Years

While long-term earnings trends give us the big picture, we also track EPS over a shorter period because it can provide insight into an emerging theme or development for the business.

Sadly for Alamo, its EPS declined by 5.6% annually over the last two years while its revenue was flat. This tells us the company struggled to adjust to choppy demand.

Alamo Trailing 12-Month EPS (Non-GAAP)

Final Judgment

Alamo isn't a terrible business, but it doesn't pass our quality test. With its shares underperforming the market lately, the stock trades at 14.4× forward P/E (or $157.92 per share). While this valuation is fair, the upside isn't great compared to the potential downside. We're pretty confident there are more exciting stocks to buy at the moment. Let us point you toward the Amazon and** PayPal of Latin America.

Stocks We Would Buy Instead of Alamo

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.

** Story Continues Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE**.

Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

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