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Is Bunge Limited (BG) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 company to watch right now is Bunge Limited (BG - Free Report) . BG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 8.23. This compares to its industry's average Forward P/E of 8.29. Over the last 12 months, BG's Forward P/E has been as high as 12.48 and as low as 6.73, with a median of 8.52.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BG has a P/S ratio of 0.22. This compares to its industry's average P/S of 0.63.

If you're looking for another solid Agriculture - Products value stock, take a look at CalMaine Foods (CALM - Free Report) . CALM is a # 1 (Strong Buy) stock with a Value score of A.

Shares of CalMaine Foods currently holds a Forward P/E ratio of 6.76, and its PEG ratio is 0.33. In comparison, its industry sports average P/E and PEG ratios of 8.29 and 0.40.

Over the last 12 months, CALM's P/E has been as high as 57.68, as low as 6.21, with a median of 14.13, and its PEG ratio has been as high as 7.11, as low as 0.30, with a median of 0.54.

CalMaine Foods also has a P/B ratio of 2.04 compared to its industry's price-to-book ratio of 0.99. Over the past year, its P/B ratio has been as high as 2.81, as low as 1.90, with a median of 2.29.

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


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