Is BUNGE GLOBAL SA (BG) Outperforming Other Basic Materials Stocks This Year?
For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Bunge Global (BG) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.
Bunge Global is a member of our Basic Materials group, which includes 231 different companies and currently sits at #15 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Bunge Global is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for BG's full-year earnings has moved 4.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, BG has moved about 8% on a year-to-date basis. Meanwhile, stocks in the Basic Materials group have gained about 5.4% on average. This means that Bunge Global is performing better than its sector in terms of year-to-date returns.
Another Basic Materials stock, which has outperformed the sector so far this year, is Linde (LIN). The stock has returned 25.2% year-to-date.
For Linde, the consensus EPS estimate for the current year has increased 0.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Bunge Global belongs to the Agriculture - Products industry, a group that includes 7 individual companies and currently sits at #34 in the Zacks Industry Rank. This group has gained an average of 8.6% so far this year, so BG is slightly underperforming its industry in this area.
Linde, however, belongs to the Chemical - Specialty industry. Currently, this 34-stock industry is ranked #204. The industry has moved +13.9% so far this year.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Bunge Global and Linde as they could maintain their solid performance.
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Bunge Global SA (BG) : Free Stock Analysis Report
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