Back to top

Image: Bigstock

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

Read MoreHide Full Article

Bunge (BG - Free Report) closed the most recent trading day at $95, moving -0.6% from the previous trading session. This change lagged the S&P 500's 0.75% gain on the day. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq gained 10.36%.

Coming into today, shares of the agribusiness and food company had gained 0.1% in the past month. In that same time, the Basic Materials sector lost 5.85%, while the S&P 500 lost 5.98%.

Bunge will be looking to display strength as it nears its next earnings release. In that report, analysts expect Bunge to post earnings of $3.14 per share. This would mark a year-over-year decline of 10.03%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.71 billion, up 12.13% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Bunge. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 remained stagnant. Bunge is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Bunge is holding a Forward P/E ratio of 8.13. This represents a premium compared to its industry's average Forward P/E of 7.87.

The Agriculture - Products industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% 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.

Be sure to follow all of these stock-moving metrics, and many more, on

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Bunge Limited (BG) - free report >>

Published in