Should Value Investors Buy BUNGE GLOBAL SA (BG) Stock?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is BUNGE GLOBAL SA (BG). BG is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BG has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.47.

Finally, investors should note that BG has a P/CF ratio of 5.80. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.34. BG's P/CF has been as high as 8.62 and as low as 5.35, with a median of 6.69, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that BUNGE GLOBAL SA is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BG feels like a great value stock at the moment.

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This article originally published on Zacks Investment Research (zacks.com).

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