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Bunge (BG) Gains But Lags Market: What You Should Know

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In the latest trading session, Bunge (BG - Free Report) closed at $93.71, marking a +0.37% move from the previous day. This change lagged the S&P 500's 0.64% gain on the day. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.46%.

Coming into today, shares of the agribusiness and food company had gained 7.78% in the past month. In that same time, the Basic Materials sector gained 6.43%, while the S&P 500 gained 4.56%.

Bunge will be looking to display strength as it nears its next earnings release. Our most recent consensus estimate is calling for quarterly revenue of $14.55 billion, up 15.4% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Bunge. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 0.1% higher. Bunge is currently a Zacks Rank #2 (Buy).

In terms of valuation, Bunge is currently trading at a Forward P/E ratio of 7.75. This valuation marks a discount compared to its industry's average Forward P/E of 23.83.

Investors should also note that BG has a PEG ratio of 1.16 right now. 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. BG's industry had an average PEG ratio of 1.16 as of yesterday's close.

The Agriculture - Products industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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