Momentum Stock Watch: Bunge Limited (BG)

Company Profile:

Bunge Limited, together with its subsidiaries, operates as an agribusiness and food company worldwide. The Company operates through five segments: Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer. Its Agribusiness segment is an integrated, global business involved in the purchase, storage, transport, processing and sale of agricultural commodities and commodity products. Its edible oil products include packaged and bulk oils, shortenings, margarines, mayonnaise and other products derived from the vegetable oil refining process. Its milling products segment includes the production and sale of a range of wheat flours and bakery mixes. The Sugar and Bioenergy segment produces sugar and ethanol; trades in and merchandises sugar; and generates electricity from burning sugarcane bagasse. The Fertilizer segment produces, blends, and distributes nitrogen, phosphate, and potassium fertilizers. Bunge Limited was founded in 1818 and is headquartered in White Plains, New York.

Recent News:

On Aug. 8, 2017, the company announced that its Board of Directors has declared a regular quarterly cash dividend of $0.46 per common share. The dividend is payable on December 4, 2017 to shareholders of record on November 20, 2017.

The company reported second-quarter net income of $81 million. It had profit of 51 cents per share. Earnings, adjusted for one-time gains and costs, came to 17 cents per share.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

@@@@@

Profitability – Measures the historical price movement of the stock.

@@@@@

Solvency – Measures the solvency of the company based on several ratios.

@@@@@

Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

@@@@@

Conclusion:

BG’s strengths can be seen in its better growth, better profitability and strong efficiency compared with its peers. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator. RSI(14) stands at 50.56 with positive bias. We rate Bunge Limited (BG) a STRONG BUY.