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

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In the latest trading session, Bunge (BG - Free Report) closed at $96.75, marking a +0.54% move from the previous day. This move outpaced the S&P 500's daily loss of 2.49%. Meanwhile, the Dow lost 2.25%, and the Nasdaq, a tech-heavy index, lost 0.25%.

Prior to today's trading, shares of the agribusiness and food company had lost 3.2% over the past month. This has lagged the Basic Materials sector's gain of 0.87% and the S&P 500's gain of 1.14% in that time.

Investors will be hoping for strength from Bunge as it approaches its next earnings release. The company is expected to report EPS of $3.14, down 10.03% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $18.71 billion, up 12.13% from the year-ago period.

BG's full-year Zacks Consensus Estimates are calling for earnings of $13.89 per share and revenue of $69.37 billion. These results would represent year-over-year changes of +7.42% and +17.28%, respectively.

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

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Bunge is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, Bunge is currently trading at a Forward P/E ratio of 6.93. Its industry sports an average Forward P/E of 6.98, so we one might conclude that Bunge is trading at a discount comparatively.

The Agriculture - Products industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 40% 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.

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