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Bunge (BG) Dips More Than Broader Markets: What You Should Know

·3 min read

In the latest trading session, Bunge (BG) closed at $88.30, marking a -1.34% move from the previous day. This move lagged the S&P 500's daily loss of 0.84%. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.18%.

Heading into today, shares of the agribusiness and food company had lost 11.68% over the past month, lagging the Basic Materials sector's loss of 6.82% and the S&P 500's loss of 10.24% in that time.

Investors will be hoping for strength from Bunge as it approaches its next earnings release. On that day, Bunge is projected to report earnings of $2.59 per share, which would represent a year-over-year decline of 30.38%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.1 billion, up 14.08% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.65 per share and revenue of $67.87 billion. These totals would mark changes of -2.17% and +14.74%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Bunge. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Bunge currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Bunge currently has a Forward P/E ratio of 7.07. This valuation marks a discount compared to its industry's average Forward P/E of 8.05.

Meanwhile, BG's PEG ratio is currently 1.06. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Agriculture - Products stocks are, on average, holding a PEG ratio of 3.41 based on yesterday's closing prices.

The Agriculture - Products industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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