Chesterfield, Missouri-based Bunge Global SA (BG) operates as an agribusiness and food company. Valued at $13.7 billion by market cap, it operates under four main segments: Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy.
Companies valued at $10 billion or more are typically classified as "large-cap" stocks, and Bunge Global is a prime example. It leverages its global presence in over 40 countries to access diverse markets and resources, giving it a strong competitive edge. Its vertically integrated supply chain, spanning from raw material sourcing to final product distribution, allows Bunge to optimize efficiency, maintain quality, and reduce costs.
Despite notable strengths, shares of Bunge Global are trading 17.6% below their 52-week high of $114.92, which they hit on Jul. 26. Also, the stock has plunged 11.3% over the past three months, underperforming the Dow Jones Industrial Average Index’s ($DOWI) 7.2% returns over the same time frame.
In the longer term, BG is down 6.2% on a YTD basis, and the shares have declined 14.4% over the past 52 weeks. The Dow has gained 11.2% in 2024 and 23.3% over the past year.
BG has been trading below its 200-day moving average since early August and under its 50-day moving average since late July, which confirms its bearish trend.
BG’s poor stock performance over the past year is largely due to declining crushing margins, which is a significant challenge for the world’s largest oilseed processor. BG is under pressure from the global oversupply of soybeans and corn, which has driven down prices.
Adding to the weak price momentum, on Jul. 31, BG shares closed down more than 8% after reporting its Q2 earnings results as it failed to meet Wall Street’s expectations.
Highlighting the contrast in performance, rival Archer-Daniels-Midland Company (ADM) has underperformed BG, with a 24.8% fall over the 52 weeks and a 19.5% drop in 2024.
Given BG's recent underperformance compared to the Dow, analysts are cautiously bullish about its prospects. The stock has a consensus rating of "Moderate Buy" from eight analysts in coverage. Its mean price target is $114.11, suggesting a premium of 20.5% from its current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
