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Bunge (BG) Gains But Lags Market: What You Should Know
Bunge (BG - Free Report) closed the most recent trading day at $98.77, moving +1.24% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.62%. Meanwhile, the Dow gained 1.17%, and the Nasdaq, a tech-heavy index, added 12.91%.
Prior to today's trading, shares of the agribusiness and food company had lost 1.17% over the past month. This has was narrower than the Basic Materials sector's loss of 2.43% and the S&P 500's loss of 4.54% 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 $3.44 per share, which would represent a year-over-year decline of 19.25%. Meanwhile, our latest consensus estimate is calling for revenue of $14.73 billion, down 7.23% from the prior-year quarter.
BG's full-year Zacks Consensus Estimates are calling for earnings of $11.71 per share and revenue of $63.34 billion. These results would represent year-over-year changes of -15.82% and -5.78%, respectively.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.69% lower. Bunge currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Bunge is currently trading at a Forward P/E ratio of 8.33. This valuation marks a discount compared to its industry's average Forward P/E of 11.38.
The Agriculture - Products industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 32% 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 Zacks.com.