Bunge (BG) closed at $98.07 in the latest trading session, marking a -1.11% move from the prior day. This change lagged the S&P 500's daily gain of 0.3%. Elsewhere, the Dow gained 0.46%, while the tech-heavy Nasdaq lost 0.02%.
Heading into today, shares of the agribusiness and food company had gained 4.33% over the past month, outpacing the Basic Materials sector's loss of 1.81% and the S&P 500's loss of 4.13% in that time.
Wall Street will be looking for positivity from Bunge as it approaches its next earnings report date. The company is expected to report EPS of $2.59, down 30.38% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.1 billion, up 14.08% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.65 per share and revenue of $67.87 billion, which would represent changes of -2.17% and +14.74%, respectively, from the prior year.
Any recent changes to analyst estimates for Bunge should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 is currently a Zacks Rank #3 (Hold).
Investors should also note Bunge's current valuation metrics, including its Forward P/E ratio of 7.84. This represents a discount compared to its industry's average Forward P/E of 8.68.
We can also see that BG currently has a PEG ratio of 1.17. 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. The Agriculture - Products industry currently had an average PEG ratio of 1.17 as of yesterday's close.
The Agriculture - Products industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% 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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