Bunge Limited (NYSE:BG) is trading at $99 and still declining. The stock has lost more than $16 over a period of three weeks. While the fair value is well above the current price levels, the stock is a sell as the bear market bites.
Bunge Limited has an EPS of $13.46. Earnings are still expected to grow. The PE ratio is 8.21. The company is also a good dividend stock with a dividend yield of 2.49%. Our research has been in support of Bunge Limited.
The stock has been among the top performers this year. However, fundamental strengths may not matter in a bear market. We project that the stock could fall below $70 in the coming days.
Bunge Limited is on accelerated declines below $100
Source – TradingView
The price of $100 has a lot of significance for the stock. Moving below $100 signals the end of a bullish trend for the stock. Investors will be worried about how far the stock can fall. This analysis projects that Bunge Limited is likely to close below $70 in the coming few weeks.
As the bear market losses deepen, the stock could stabilize at $50 by the end of the year. Long-term investors could wait for the buying opportunities at the projected lower prices.
Summary
Bunge Limited is a fundamentally strong stock. We recommend selling and taking profit at the current price levels. Long-term investors can then buy back the stock when the market bottoms out between $50 and $70.
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