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Should Value Investors Buy BUNGE GLOBAL SA (BG) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is BUNGE GLOBAL SA (BG - Free Report) . BG is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value.

Investors should also note that BG holds a PEG ratio of 4.94. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BG's PEG compares to its industry's average PEG of 5.77. BG's PEG has been as high as 5.59 and as low as 2.45, with a median of 3.52, all within the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BG has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.45.

Finally, investors will want to recognize that BG has a P/CF ratio of 5.80. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.41. BG's P/CF has been as high as 8.62 and as low as 5.35, with a median of 6.69, all within the past year.

These are only a few of the key metrics included in BUNGE GLOBAL SA's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BG looks like an impressive value stock at the moment.


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