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Bunge (BG) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Bunge (BG - Free Report) closed at $103.92, marking a -0.41% move from the previous day. This change lagged the S&P 500's 1.46% gain on the day. Elsewhere, the Dow gained 1%, while the tech-heavy Nasdaq lost 0.17%.
Coming into today, shares of the agribusiness and food company had lost 10.42% in the past month. In that same time, the Basic Materials sector lost 3.64%, while the S&P 500 lost 6.94%.
Wall Street will be looking for positivity from Bunge as it approaches its next earnings report date. On that day, Bunge is projected to report earnings of $3.24 per share, which would represent year-over-year growth of 24.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.17 billion, up 18.06% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.87 per share and revenue of $70.32 billion. These totals would mark changes of -0.46% and +18.89%, respectively, from last year.
Any recent changes to analyst estimates for Bunge should also be noted by investors. Recent revisions tend to reflect the latest 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Bunge is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that Bunge has a Forward P/E ratio of 8.11 right now. Its industry sports an average Forward P/E of 14.27, so we one might conclude that Bunge is trading at a discount comparatively.
Meanwhile, BG's PEG ratio is currently 1.21. 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 was holding an average PEG ratio of 1.21 at yesterday's closing price.
The Agriculture - Products industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.