5 Best Sugar Stocks to Buy Now

3. Bunge Ltd. (NYSE:BG)

Hedge Fund Holdings: 48

Headquartered in Chesterfield, Missouri, Bunge Ltd. (NYSE:BG) is an American agribusiness and food company which specializes in the processing and export of soybean, grain, sugar, and fertilizer.

On December 14, UBS analyst Manav Gupta initiated coverage of Bunge Ltd. (NYSE:BG) with a Buy rating, and a $133 price target. According to Gupta, the market is heavily concerned with margin compression in 2024-2025, whilst ignoring the $13.50-plus per share in earnings Bunge (NYSE:BG) is projected to deliver in 2022. Furthermore, the company is hardly getting credit for $3.3 billion in capital it plans to invest internally the next three years. The analyst is confident that will likely add another $2.50 per share to the stock’s EPS, a fact not reflected well in Bunge’s (NYSE:BG) current valuation. This provides for an excellent entry-point for investors.

In Q3 2022,  Bunge Ltd. (NYSE:BG) posted an EPS of $3.45, beating estimates of $2.49 by $0.96. Furthermore, the company generated a total revenue of $16.76 billion, conclusively beating consensus expectations of $16.43 billion. Moreover, Bunge Ltd. (NYSE:BG) managed to maintain hedge fund sentiment around its stock in Q3, with 48 funds long the stock in Q2 and Q3 of 2022.

Here is what Old West Investment Management had to say about Bunge Limited (NYSE:BG) in their Q1 2022 investor letter:

“Bunge (pronounced BUN-GEE) Ltd (NYSE:BG) is one of the biggest agribusinesses and food companies in the world. There are four worldwide companies that dominate the sector, the others being Archer-Daniels-Midland Cargill, and Dreyfuss. One of our favorite ways to screen for new ideas is following insider buying. When I saw the Form 4 filed by new Bunge CEO Greg Heckman, his purchase of $9 million of BG stock intrigued me. My initial thought was the company gave him the stock as a signing bonus. I contacted BG Investor Relations and asked whether it was a signing bonus or did Heckman actually write a check for $9 million. IR assured me it was his own hard-earned money that he invested in the company he was about to run.

Heckman was a long time executive at Conagra Foods who obviously sensed opportunity at BG. One of his first moves as CEO was to move the company’s HQ from New York to St. Louis, right in the middle of America’s breadbasket. BG had been plagued for years with poor decisions by underperforming management. Heckman’s decision to move to St. Louis was indicative of a no-nonsense style and he would commence cutting expenses and selling non-core assets…” (Click here to see the full text)