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Are Investors Undervaluing Bunge Limited (BG) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Bunge Limited (BG - Free Report) . BG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.51 right now. For comparison, its industry sports an average P/E of 8.88. Over the last 12 months, BG's Forward P/E has been as high as 12.48 and as low as 6.73, with a median of 8.49.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BG has a P/S ratio of 0.21. This compares to its industry's average P/S of 0.62.

Another great Agriculture - Products stock you could consider is CalMaine Foods (CALM - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.

Shares of CalMaine Foods are currently trading at a forward earnings multiple of 6.92 and a PEG ratio of 0.33 compared to its industry's P/E and PEG ratios of 8.88 and 0.43, respectively.

CALM's Forward P/E has been as high as 57.68 and as low as 6.21, with a median of 12.87. During the same time period, its PEG ratio has been as high as 7.11, as low as 0.30, with a median of 0.35.

CalMaine Foods sports a P/B ratio of 1.98 as well; this compares to its industry's price-to-book ratio of 1.04. In the past 52 weeks, CALM's P/B has been as high as 2.81, as low as 1.95, with a median of 2.29.

These are only a few of the key metrics included in Bunge Limited and CalMaine Foods strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BG and CALM look like an impressive value stock at the moment.


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