Russia's war on Ukraine raises fears of food and energy shortages around the world. Agriculture company Bunge is ramping up sales, and donations, of fertilizer and seed products to help alleviate the shortage. On Tuesday the IBD Relative Strength Rating for Bunge stock rose to a lofty 85, up from 78 the day before, making Bunge a good watchlist candidate.
Market research shows that stocks that go on to make the biggest gains often have an RS Rating of over 80 in the early stages of their moves. Bunge is now in that elite group.
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Bunge Stock's Other Ratings Shine
Meanwhile, on its website Bunge says it donated $1 million in bottled oil and wheat to organizations in Ukraine to alleviate hunger there. It also donated "a combined million dollars to Vostok-SOS and the World Food Programme. In addition, to amplify our impact, we are matching financial contributions employees make to the World Food Programme," the company said.
Among its other key ratings, Bunge boasts a 95 EPS Rating. That puts it in the top 5% of all companies for recent quarters and years profit growth. It has a 91 Composite Rating and a C+ Accumulation/Distribution Rating, indicating institutions are buying more of its shares than selling.
Bunge stock soared 343% from a Covid market crash low 29 in late March 2020 to an intraday high 128.40 on April 21 this year. Then the St. Louis-based ag giant succumbed to the 2022 bear market. It dipped as low as 83.78 in early July. It's a leader in the recent, struggling market rally attempt, though it closed at 94.17 Tuesday, down 4.9% on a down day for the market. It's trying to find support at its 50-day line. Bunge stock is building a consolidation with a 128.50 buy point. See if it can clear the breakout price in heavy volume.
Consistent Double-Digit Sales, Profit Growth
The company reported 14% earnings growth in its most recent report, to $2.97 per share. That came on 17% sales growth to $17.9 billion. It's recorded double-digit earnings and sales growth every quarter over the past year. EPS growth ranged from 14% to 51%, while sales growth ranged from 17% to 39%.
Bunge stock holds the No. 2 rank among its peers in the Agricultural Operations industry group. Darling Ingredients and Corteva are also among the group's highest-rated stocks.
As you try to find the best stocks to buy and watch, be sure to pay attention to stock relative price strength.
IBD's unique Relative Strength Rating tracks share price movement with a 1 (worst) to 99 (best) score. The score shows how a stock's price performance over the last 52 weeks holds up against all the other stocks in our database.
