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Bunge (BG) Dips More Than Broader Markets: What You Should Know

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Bunge (BG - Free Report) closed at $94.91 in the latest trading session, marking a -1.97% move from the prior day. This change lagged the S&P 500's daily loss of 1.85%. Elsewhere, the Dow lost 1.66%, while the tech-heavy Nasdaq lost 10.91%.

Prior to today's trading, shares of the agribusiness and food company had lost 1.4% over the past month. This has lagged the Basic Materials sector's loss of 1.25% and was narrower than the S&P 500's loss of 2.85% 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 $3.44, down 19.25% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.73 billion, down 7.23% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.83 per share and revenue of $63.34 billion, which would represent changes of -14.95% and -5.78%, respectively, from the prior year.

Investors should also note any 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.

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. The Zacks Consensus EPS estimate has moved 0.55% lower within the past month. Bunge is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Bunge's current valuation metrics, including its Forward P/E ratio of 8.19. This valuation marks a discount compared to its industry's average Forward P/E of 11.22.

The Agriculture - Products industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 166, putting it in the bottom 35% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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