Strong And Under The Radar Today: Bunge (BG)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Bunge ( BG) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Bunge as such a stock due to the following factors:

  • BG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $72.9 million.
  • BG is making at least a new 3-day high.
  • BG has a PE ratio of 161.4.
  • BG is mentioned 1.52 times per day on StockTwits.
  • BG has not yet been mentioned on StockTwits today.
  • BG is currently in the upper 20% of its 1-year range.
  • BG is in the upper 35% of its 20-day range.
  • BG is in the upper 45% of its 5-day range.
  • BG is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on BG:

Bunge Limited, through its subsidiaries, is engaged in agriculture and food businesses worldwide. It operates through five segments: Agribusiness, Sugar and Bioenergy, Edible Oil Products, Milling Products, and Fertilizer. The stock currently has a dividend yield of 1.6%. BG has a PE ratio of 161.4. Currently there are 4 analysts that rate Bunge a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Bunge has been 900,800 shares per day over the past 30 days. Bunge has a market cap of $12.5 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 1.00 and a short float of 2.5% with 4.62 days to cover. Shares are up 4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Bunge as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • BG's revenue growth has slightly outpaced the industry average of 3.1%. Since the same quarter one year prior, revenues slightly increased by 8.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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 111.8% when compared to the same quarter one year prior, rising from $136.00 million to $288.00 million.
  • Net operating cash flow has significantly increased by 143.18% to $266.00 million when compared to the same quarter last year. In addition, BUNGE LTD has also vastly surpassed the industry average cash flow growth rate of 2.83%.
  • The debt-to-equity ratio is somewhat low, currently at 0.86, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.71 is somewhat weak and could be cause for future problems.
  • BUNGE LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BUNGE LTD reported lower earnings of $0.89 versus $2.44 in the prior year. This year, the market expects an improvement in earnings ($5.94 versus $0.89).

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