#5 - Bunge (NYSE:BG)
The supply and demand dynamic for wheat are one of the more compelling reasons for investors to consider Bunge (NYSE:BG) stock. The company is involved in storing, transporting, and processing commodities, notably wheat. It also supplies milled wheat to a variety of commercial businesses including food service firms, brewers, and bakeries. As Melissa Brock wrote for MarketBeat, the company’s various business segments “provide the backbone for many items that end up on grocery store shelves.” The company has its own storage facilities and has a tight supply that should support elevated prices.
BG stock is up 15% for the year and that’s down from the 35% gain it was posted earlier this year. A P/E ratio of 8.5 combined with a low beta of 0.49 suggests that investors are not undertaking a lot of risks. Earnings and revenue are projected to remain well above pre-pandemic levels for the next few years. That could be enough to improve the company’s free cash flow situation.
About Bunge Global
Bunge Global SA operates as an agribusiness and food company worldwide. It operates through four segments: Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy. The Agribusiness segment purchases, stores, transports, processes, and sells agricultural commodities and commodity products, including oilseeds primarily soybeans, rapeseed, canola, and sunflower seeds, as well as grains comprising wheat and corn; and processes oilseeds into vegetable oils and protein meals.
Read More - Current Price
- $106.54
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 7 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $121.00 (13.6% Upside)
