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Bunge (BG) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research
·3 min read

Bunge (BG) closed at $98.71 in the latest trading session, marking a -0.07% move from the prior day. This move lagged the S&P 500's daily gain of 0.08%. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq lost 4.81%.

Prior to today's trading, shares of the agribusiness and food company had gained 12.07% over the past month. This has outpaced the Basic Materials sector's gain of 7.23% and the S&P 500's gain of 0.64% in that time.

Wall Street will be looking for positivity from Bunge as it approaches its next earnings report date. This is expected to be February 9, 2022. On that day, Bunge is projected to report earnings of $3.05 per share, which would represent no growth from the year-ago period. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.51 billion, up 23.02% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Bunge. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.56% higher. Bunge currently has a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Bunge has a Forward P/E ratio of 10.18 right now. For comparison, its industry has an average Forward P/E of 19.56, which means Bunge is trading at a discount to the group.

We can also see that BG currently has a PEG ratio of 1.52. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Agriculture - Products industry currently had an average PEG ratio of 1.52 as of yesterday's close.

The Agriculture - Products industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 23, which puts it in the top 10% 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.

To follow BG in the coming trading sessions, be sure to utilize Zacks.com.


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