Bunge Global (BG) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Individual inves ...

Group 1: ZTOExpress (Cayman) Inc. - ZTOExpress has a Zacks Rank of 1 and a 5.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - ZTO's shares have gained 14.3% over the last three months, while the S&P 500 has declined by 6.0% [1] - The company has a Momentum Score of A [1] Group 2: Bunge Global SA - Bunge Global has a Zacks Rank of 1 and a 4.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Bunge Global's shares have gained 13.9% over the past three months, compared to the S&P 500's decline of 6.0% [2] - The company has a Momentum Score of B [2]

Core Insights - Two stocks with strong income characteristics and buy rank are highlighted for investors: ZTO Express (Cayman) Inc. and Bunge Global SA [1][2] Company Summaries ZTO Express (Cayman) Inc. - The logistics company has seen a 5.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - It holds a Zacks Rank of 1 and offers a dividend yield of 2.8%, significantly higher than the industry average of 0.0% [1] Bunge Global SA - The agribusiness and food company has experienced a 4.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - It also holds a Zacks Rank of 1 and provides a dividend yield of 2.9%, compared to the industry average of 0.0% [2]

Group 1: Federated Hermes, Inc. (FHI) - Federated Hermes has a Zacks Rank of 1 and a price-to-earnings ratio (P/E) of 10.19, significantly lower than the industry average of 18.80 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 7.7% over the last 60 days [1] - The company possesses a Value Score of A, indicating strong value characteristics [1] Group 2: Bunge Global SA (BG) - Bunge Global carries a Zacks Rank of 1 and has a P/E ratio of 12.83, compared to 25.07 for the S&P [2] - The Zacks Consensus Estimate for its next year earnings has also increased by 7.7% over the last 60 days [2] - The company has a Value Score of A, reflecting its strong value characteristics [2] Group 3: ZTO Express (Cayman) Inc. (ZTO) - ZTO Express holds a Zacks Rank of 1 with a P/E ratio of 12.76, lower than the S&P average of 25.07 [3] - The Zacks Consensus Estimate for its current year earnings has risen by 5.9% over the last 60 days [3] - The company possesses a Value Score of B, indicating solid value characteristics [3]

Core Insights - Bunge Global SA has a market capitalization of $18.2 billion and operates in four major segments: Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy [1] Performance Overview - Over the past 52 weeks, Bunge's stock has increased by 3.7%, underperforming the S&P 500 Index, which gained 13.7%. However, year-to-date, Bunge's shares have risen by 20.9%, outperforming the S&P 500's 13.4% increase [2] - Bunge's shares have also outperformed the Consumer Staples Select Sector SPDR Fund, which saw a nearly 4% decline over the same period [3] Financial Results - On November 5, Bunge's Q3 2025 adjusted EPS was reported at $2.27, exceeding expectations. The acquisition of Viterra significantly boosted volumes, leading to a 67% increase in soy processing and refining profit, more than doubling softseed processing profit, and a 56% profit increase in grain merchandising and milling [4] - For the fiscal year ending December 2025, analysts project an 18.5% year-over-year decline in adjusted EPS to $7.49. Bunge has a mixed earnings surprise history, beating consensus estimates in three of the last four quarters [5] Analyst Ratings - Among nine analysts covering Bunge, the consensus rating is a "Strong Buy," with seven "Strong Buy" ratings and two "Holds" [5] - J.P. Morgan analyst Thomas Palmer maintained a "Buy" rating on Bunge and reaffirmed a price target of $109. The mean price target of $103.78 indicates a 10.4% premium to the current price, while the highest target of $120 suggests a potential upside of 27.7% [6]

Financial Performance - For the three months ended September 30, 2025, net income attributable to Bunge shareholders was $166 million, a decrease of $55 million compared to $221 million for the same period in 2024[215]. - Total EBIT for the three months ended September 30, 2025, was $403 million, a decrease of $4 million compared to $407 million for the same period in 2024[217]. - For the nine months ended September 30, 2025, net income attributable to Bunge was $721 million, an increase of $186 million compared to $535 million for the same period in 2024[215]. - Income tax expense for the three months ended September 30, 2025, was $86 million, compared to $89 million for the same period in 2024[218]. - Segment EBIT for Soybean Processing and Refining increased by 52% to $337 million for the three months ended September 30, 2025, compared to $222 million for the same period in 2024[226]. - Segment EBIT increased by 10% to $254 million for the nine months ended September 30, 2025, driven by higher other income, partially offset by increased selling, general and administrative expenses[257]. - Corporate and Other EBIT decreased by 106% to a loss of $268 million for the three months ended September 30, 2025, primarily due to increased SG&A expenses from the Acquisition of Viterra[259]. Sales and Revenue - Soybean Processing and Refining segment net sales increased 38% to $10,857 million for the three months ended September 30, 2025, primarily due to contributions from the Viterra acquisition and higher oilseed merchandising volumes[227]. - Soybean Processing and Refining segment net sales increased 7% to $25,268 million for the nine months ended September 30, 2025, driven by contributions from the acquisition of Viterra and higher oilseed volumes[232]. - Softseed Processing and Refining segment net sales increased 130% to $3,661 million for the three months ended September 30, 2025, mainly from the acquisition of Viterra and higher average sales prices in Europe[239]. - Other Oilseeds Processing and Refining segment net sales increased 13% to $1,207 million for the three months ended September 30, 2025, primarily due to higher sales prices in the tropical oils business[245]. - Grain Merchandising and Milling segment net sales increased 168% to $6,428 million for the three months ended September 30, 2025, driven by contributions from the acquisition of Viterra and increased export demand[251]. Costs and Expenses - Cost of goods sold increased 37% to $10,359 million for the three months ended September 30, 2025, primarily due to higher net sales and unfavorable mark-to-market results[228]. - Cost of goods sold increased 5% to $23,877 million for the nine months ended September 30, 2025, primarily due to higher net sales[233]. - Cost of goods sold for the Softseed Processing and Refining segment increased 137% to $3,372 million for the three months ended September 30, 2025[240]. - Segment EBIT for Grain Merchandising and Milling decreased 73% to $21 million for the three months ended September 30, 2025, primarily due to higher selling, general and administrative expenses[253]. Working Capital and Cash Flow - Working capital at September 30, 2025, was $10,622 million, an increase of $2,394 million compared to $8,228 million at September 30, 2024[219]. - Cash used for operating activities was $503 million for the nine months ended September 30, 2025, a decrease of $1,350 million compared to cash provided of $847 million for the same period in 2024[295]. - Cash used for investing activities increased to $5,524 million for the nine months ended September 30, 2025, up from $957 million in the same period of 2024, primarily due to the acquisition of Viterra for $4,116 million[297]. - Cash provided by financing activities was $4,021 million for the nine months ended September 30, 2025[293]. Acquisition of Viterra - The acquisition of Viterra was completed on July 2, 2025, with Viterra shareholders receiving approximately 65.6 million shares of Bunge valued at $5.3 billion and $1.9 billion in cash[212]. - The company completed the acquisition of Viterra, which significantly impacted its equity and debt structure[290]. - Cash payments for the acquisition of Viterra were net of cash acquired, totaling $4,116 million, contributing to the increase in cash used for investing activities[297]. Debt and Equity - Total debt increased to $15,589 million as of September 30, 2025, up from $6,238 million at December 31, 2024, representing a $9,351 million increase[278]. - Total Bunge shareholders' equity reached $15,768 million at September 30, 2025, an increase of $5,855 million from $9,913 million at December 31, 2024[290]. - Noncontrolling interests increased to $1,462 million at September 30, 2025, compared to $1,032 million at December 31, 2024, an increase of $430 million[291]. - Bunge's total unused and available committed borrowing capacity was $8,665 million as of September 30, 2025[277]. Foreign Exchange and Market Risks - Foreign exchange losses for the three months ended September 30, 2025, amounted to $42 million, a decrease of 380% compared to the previous year, primarily due to unfavorable hedging results[229]. - Foreign exchange gains increased 116% to a gain of $9 million for the nine months ended September 30, 2025, attributed to a weaker U.S. dollar[234]. - The company recorded a foreign currency gain on debt of $251 million for the nine months ended September 30, 2025, impacting cash flows from operating activities[296]. - The company actively manages various market risks, including commodity prices, foreign currency exchange rates, and interest rates, through derivative instruments[303]. Derivative Instruments - The company primarily uses derivative instruments to manage exposure to agricultural commodity price movements, utilizing exchange-traded futures and options contracts[321]. - The company employs freight forward agreements (FFAs) and FFA options to hedge ocean freight costs, with changes in fair values recorded in Cost of goods sold[322]. - Energy derivatives are used to manage exposure to volatility in energy costs, with changes in fair values also recorded in Cost of goods sold[323]. - The company may enter into credit default swaps, carbon emission derivatives, and equity derivatives to manage credit risk and macroeconomic risks, with impacts recorded in Cost of goods sold[324].

Core Insights - Bunge Global SA reported third-quarter 2025 adjusted earnings of $2.27 per share, exceeding the Zacks Consensus Estimate of $2.23, but reflecting a 1% year-over-year decline [1][10] - The company completed the acquisition of Viterra, enhancing its global network and agricultural capabilities, with net sales reaching $22.16 billion, a 71.6% increase from the previous year, although it fell short of the consensus estimate of $26.55 billion [2][10] Financial Performance - The cost of sales increased to $21 billion, up 74% year-over-year, while gross profit rose 38% to $1.06 billion [3] - Selling and administrative expenses were $678 million, a 55% increase year-over-year, leading to an operating profit of $403 million, down 1% from the prior year [3] - Adjusted total operating profit surged 54% year-over-year to $757 million, with total adjusted operating margin contracting by 40 basis points to 3.4% [4] Segment Performance - Soybean Processing and Refining: Sales increased 38% to $10.86 billion, with processed soybeans up 30% to 12,139 thousand metric tons, and adjusted operating profit rising 67% to $478 million [5] - Softseed Processing and Refining: Sales surged 130% to $3.66 billion, with processed volumes increasing to 3,124 thousand metric tons, and adjusted operating profit up 107% to $275 million [6] - Other Oilseeds Processing and Refining: Sales rose 13.4% to $1.2 billion, but adjusted operating profit fell 19% to $51 million due to mixed results across regions [7] - Grain Merchandising and Milling: Sales increased 168% to $6.43 billion, with volumes up 168.6% to 24,080 thousand metric tons, and adjusted operating profit rising 56% to $120 million [8][9] Cash Flow and Balance Sheet - Cash used in operating activities was $503 million in the first nine months of 2025, compared to an inflow of $847 million in the same period last year [11] - Cash and cash equivalents decreased to $1.3 billion from $3.3 billion at the end of 2024, while long-term debt rose to $9.8 billion from $4.7 billion [12] Outlook - Bunge Global maintains its 2025 adjusted EPS outlook in the range of $7.30-$7.60 [13] Stock Performance - Bunge Global's shares have gained 20.8% year-to-date, outperforming the industry, which has seen an 11% decline [14]

Core Insights - Bunge Global exceeded Wall Street's expectations for third-quarter adjusted profit, driven by the acquisition of Viterra and improved oilseed processing margins, resulting in a 4.7% increase in shares [1] Group 1: Financial Performance - Bunge's adjusted profit for the quarter ending September 30 was $2.27 per share, the lowest third-quarter result since 2019, but above analysts' average estimate of $2.09 per share [5] - The combined company's soy processing and refining segment profit increased by 67% compared to the same quarter last year, while softseed processing and refining profit more than doubled due to a surge in volumes [6] - Profit in Bunge's grain merchandising and milling division rose by 56%, driven by higher wheat milling and ocean freight earnings, which offset poor grain merchandising results [6] Group 2: Market Dynamics - Strong soybean exports from South America, particularly from Argentina and Brazil, positively impacted Bunge's soybean processing and refining segment, as China reduced imports from the U.S. due to trade tensions [2] - In contrast, rival grain trader Archer-Daniels-Midland lowered its 2025 outlook due to U.S. trade policy uncertainty, highlighting the challenges faced by agribusinesses amid ample global crop supplies and declining margins [3] Group 3: Future Outlook - Ongoing uncertainty regarding trade and biofuels policy is expected to negatively affect fourth-quarter earnings, as both farmers and customers are hesitant to make long-term deals, putting pressure on Bunge's margins [4] - Bunge reaffirmed its earnings guidance for 2025, projecting between $7.30 and $7.60 per share, while acknowledging headwinds from policy uncertainty but noting that conditions are "developing favorably" [5]

Core Insights - Bunge Global reported a revenue of $22.16 billion for the quarter ended September 2025, reflecting a year-over-year increase of 71.6% but falling short of the Zacks Consensus Estimate by 16.55% [1] - The company's EPS was $2.27, slightly down from $2.29 in the same quarter last year, with a positive surprise of 1.79% compared to the consensus estimate of $2.23 [1] Financial Performance - The revenue surprise was significant, with actual revenue being $22.16 billion against an expected $26.55 billion [1] - Key metrics showed mixed results, with grain merchandising and milling volume at $24.08 billion, below the average estimate of $29.13 billion [4] - Adjusted EBIT for soybean processing and refining was $478 million, slightly above the estimate of $470.1 million, while softseed processing and refining significantly outperformed expectations with $275 million against an estimate of $113.9 million [4] - Corporate and other adjusted EBIT reported a loss of $167 million, worse than the expected loss of $150.38 million [4] Stock Performance - Bunge Global's shares have returned +11.8% over the past month, outperforming the Zacks S&P 500 composite, which saw a +1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The reported third quarter earnings per share (EPS) was $0.86 compared to $1.56 in the third quarter of 2024, reflecting a significant decline [10] - Adjusted EPS was $2.27 in the third quarter versus $2.29 in the prior year, indicating a slight decrease [10] - Adjusted segment earnings before interest and taxes (EBIT) was $924 million in the quarter compared to $559 million last year, showing strong operational performance [10][11] - The adjusted leverage ratio was 2.2 times at the end of the third quarter, reflecting the impact of acquisition debt from Viterra [17] Business Line Data and Key Metrics Changes - Soybean processing and refining results improved across all regions due to higher margins and the addition of Viterra's South American assets [10][11] - Softseed processing and refining results were driven by higher average margins and the addition of Viterra's softseed capabilities [11] - Grain merchandising and milling saw higher results in wheat milling and ocean freight, partially offset by lower results in global wheat and corn merchandising [12] Market Data and Key Metrics Changes - In North America, higher processing results were offset by lower results in refining, while in South America, results were higher in processing and refining [10][11] - European processing results improved, particularly in biodiesel, while refining results were slightly down [11] - The global supply and demand environment has become less volatile, contributing to improved performance [15] Company Strategy and Development Direction - The company is focused on integrating Viterra and leveraging the combined platform to enhance operational efficiency and capture synergies [4][6] - The strategic alignment along the end-to-end value chain operating model aims to improve agility, transparency, and collaboration [4][6] - The company anticipates capturing significant synergies from the Viterra integration, with expectations for a meaningful impact in 2026 [39][41] Management's Comments on Operating Environment and Future Outlook - Management noted a high degree of complexity in the marketplace, with farmers and end consumers remaining largely spot [21] - The company expects full year 2025 adjusted EPS in the range of $7.30-$7.60, reflecting ongoing macro trade and biofuel policy uncertainty [7][20] - Management expressed confidence in the company's ability to adapt to shifting trade flows and maintain operational efficiency [21][22] Other Important Information - The company generated approximately $1.2 billion of adjusted funds from operations year-to-date, with $900 million of discretionary cash flow available after capital expenditures [15] - The company repurchased 6.7 million shares for $545 million, indicating a commitment to returning value to shareholders [16][70] Q&A Session Summary Question: Clarity on biofuel policy and soybean oil margins - Management expects clarity on the Renewable Volume Obligation (RVO) by year-end or early next year, with improvements in soybean oil margins anticipated by early 2026 [25][27] Question: Stability of earnings in the new combined grain business - The combined grain business offers more stability in earnings due to enhanced storage capabilities and origination strengths from Viterra [28][30] Question: Impact of Viterra on EPS and EBIT - Viterra's integration is expected to be mildly dilutive to EPS for the year, but early indications show strong contributions from both legacy Bunge and Viterra operations [33][36] Question: Timing of synergy capture from Viterra - Significant synergy capture is expected in 2026, with some benefits anticipated in Q4 2025 [39][40] Question: Opportunities and risks in Argentina post-Viterra - The company is now more balanced globally, allowing it to mitigate risks associated with Argentina's volatility while capitalizing on its origination and processing capabilities [79] Question: Supply and demand dynamics in Australia - A large crop is expected in Australia, with opportunities for increased exports and competitive positioning in global markets [86][88] Question: Future capital projects and investment opportunities - The company does not foresee large capital projects from Viterra but will continue to evaluate opportunities for growth and consolidation in the industry [95][96]