NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, notable return on equity, attractive valuation levels and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 2636.4% when compared to the same quarter one year prior, rising from $11.00 million to $301.00 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Food Products industry and the overall market, BUNGE LTD's return on equity exceeds that of both the industry average and the S&P 500.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- BG's revenue growth has slightly outpaced the industry average of 13.8%. Since the same quarter one year prior, revenues rose by 21.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
Bunge Limited engages in the agriculture and food businesses in approximately 30 countries. The company has a P/E ratio of 4.6, equal to the average food & beverage industry P/E ratio and below the S&P 500 P/E ratio of 16. Bunge has a market cap of $10.2 billion and is part of the
industry. Shares are up 7.8% year to date as of the close of trading on Wednesday.
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