UBS’ Top Quant Stocks In AI, IT, Healthcare & Other Sectors: Top 33 Stocks In All Sectors

24. Bunge Limited (NYSE:BG)

Number of Hedge Fund Investors In Q2 2024: 26

Sector: Consumer Staples

Bunge Limited (NYSE:BG) is a sizable American food company that is the world’s largest oilseed processor. It has a diversified business model which enables the firm to target the commodity, food oil, bakery, and other industries. Consequently, Bunge Limited (NYSE:BG)’s shares depend quite a bit on the state of the US agricultural and farm industry. This makes it unsurprising that the shares are down 18.6% year to date since the farm sector is dealing with demand and supply mismatches that have led to reduced output and pricing volatility. Bunge Limited (NYSE:BG)’s shares tanked by a massive 16.7% in late July and early August due to the firm’s exposure to the corn market. This meant that the firm’s EPS of $1.73 for its June quarter missed analyst estimates of $1.80. Consequently, Bunge Limited (NYSE:BG)’s hypothesis now depends on the broader corn and soybean market as well as its $36 billion bid to acquire Viterra.

Bunge Limited (NYSE:BG)’s management commented on the Viterra affair during the Q3 2024 earnings call:

“We’re making great progress on integration planning for our announced combination with Viterra. The teams are working well together, confirming our confidence that we will be more complete as one combined company. Their commitment will ensure that we can effectively serve our customers from day one. We also continued to engage with the relevant authorities as we work towards gaining a few remaining regulatory approvals.

Since our last call, we received conditional clearance from the European Commission and we’re well through the process of meeting the conditions. Conversations in other jurisdictions are constructive. We do not see any issues that would materially impact the economics of the deal. We expect to close the transaction later this year or early 2025.”