Bunge stock was on the upswing before Russia invaded Ukraine in February. Then its stock spiked amid concerns about the global food supply. And despite the global bear market for stocks, top-ranked Bunge stock's IBD Relative Strength (RS) Rating on Wednesday bounced up to 81, rising from 78 the day before.
Its new 81 RS Rating is a notable improvement. Decades of market research shows that the stocks that go on to make the biggest gains tend to have an RS Rating over 80 as they launch their biggest price moves. Bunge is in the winners circle now.
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Bunge Stock Buffeted By Macro Factors
With grain from Russia and Ukraine largely missing from the world market, farmers around the world are scrambling to increase production to avoid starvation in poorer parts of the world. That's bullish for Bunge, which processes grains and oilseeds and makes fertilizer. However, with the overall stock market bearish, interest rates rising and the Fed determined to slow growth to cap inflation, Bunge isn't immune to such macro factors.
Bunge stock is ranked No. 1 in the Agricultural Operations industry group. Seeds and other ag products seller Corteva and cooking oil recycler Darling Ingredients are Nos. 2 and 3 in the group, respectively.
Bunge stock soared 53% from an 84.10 low at the end of last December to 128.40 on April 21. Then it succumbed to the emerging bear market and tumbled below 100. It closed Wednesday at 91.48, up 0.85% for the day. It's risen three of the past five days. While Bunge is not near an ideal buy zone right now, see if it is able to form and break out from a proper base.
Earnings Surged 36% Last Quarter
Bunge stock has mostly advanced as it has reported double-digit sales and profit growth every quarter over the past year. Earnings climbed 36% last quarter to $4.26 per share, up from 14% growth the prior quarter. Revenue rose 23% in its most recent quarter, to $15.9 billion. The prior three periods it posted 63%, 39% and 32% sales growth. Keep an eye out for the company's next round of numbers on or around July 28.
When looking for the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD's proprietary Relative Strength Rating tracks market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price performance over the trailing 52 weeks holds up against all the other stocks in our database.
