Why Did Bunge Limited Stock Rise 3% after Its 1Q16 Results?



Bunge rose after earnings release

Bunge Limited (BG) reported its 1Q16 results before the Market opened on April 28. The stock rose 3% with a high trading volume. It reacted to the earnings beating estimates. It closed at $62.51 on April 28. The stock maintained its rising trend and closed at $62.45 on May 2.

Bunge is a global agribusiness and food company with headquarters in White Plains, New York. Bunge stock has risen by as much as 25% since its last earnings release on February 11. So far, the stock has fallen 6% in 2016. It lost 25% in 2015. As of May 2, Bunge has been outperformed by the Market, as represented by the S&P 500 Index.

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Peers’ stock performance

Bunge’s peers in the industry include Archer Daniels Midland (ADM), Ingredion (INGR), and Syngenta AG (SYT). Archer Daniels Midland has risen 10% on a YTD (year-to-date) basis. Ingredion has gained 20%. Syngenta has returned 4% YTD. Archer Daniels Midland, Syngenta, and Ingredion closed trade at $40.26, $81.41, and $114.99, respectively, on May 2.

To gain exposure to Bunge, you can invest in the PowerShares Dynamic Food and Beverage Portfolio (PBJ) and the FlexShares Morningstar Global Upstream Natural Resources Index ETF (GUNR). They invest 2.6% and 1.4% of their respective holdings in Bunge.


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