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Bunge (BG) Gains As Market Dips: What You Should Know
In the latest trading session, Bunge (BG - Free Report) closed at $100.58, marking a +1.64% move from the previous day. This move outpaced the S&P 500's daily loss of 0.41%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 6.67%.
Heading into today, shares of the agribusiness and food company had lost 3.34% over the past month, lagging the Basic Materials sector's loss of 1.25% and outpacing the S&P 500's loss of 4.4% in that time.
Investors will be hoping for strength from Bunge as it approaches its next earnings release. On that day, Bunge is projected to report earnings of $3.14 per share, which would represent a year-over-year decline of 10.03%. Meanwhile, our latest consensus estimate is calling for revenue of $18.71 billion, up 12.13% from the prior-year quarter.
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.
It is also important to note the recent changes to analyst estimates for Bunge. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Bunge is currently trading at a Forward P/E ratio of 7.13. This valuation marks a discount compared to its industry's average Forward P/E of 7.26.
The Agriculture - Products industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% 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.