In this article, we discuss 5 best stocks to buy before the next recession starts. If you want to see more stocks in this selection, click 10 Best Stocks to Buy Before Recession Begins.
5. Bunge Limited (NYSE:BG)
Number of Hedge Fund Holders: 48
Bunge Limited (NYSE:BG) is a Missouri-based food company that operates through Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy segments. Bunge Limited (NYSE:BG) on August 11 declared a $0.625 per share quarterly dividend, in line with previous. The dividend is payable on December 2, to shareholders of record on November 18. As of September 22, the company delivers a dividend yield of 2.81%. Bunge Limited (NYSE:BG) is one of the best stocks to buy before the next recession starts, as demand for food ingredients never runs low even amid economic downturns.
On August 12, Wolfe Research analyst Sam Margolin initiated coverage of Bunge Limited (NYSE:BG) with an Outperform rating and a $127 price target. The analyst thinks that the company’s growth guidance has some upside amid a robust commodity price backdrop. The analyst also highlighted Bunge Limited (NYSE:BG)’s expected FY23 free cash flow yield being “materially” above the average during the 2015-2019 period.
According to Insider Monkey’s Q2 data, 48 hedge funds were long Bunge Limited (NYSE:BG), compared to 55 funds in the earlier quarter. Israel Englander’s Millennium Management, with roughly 2 million shares worth $176.8 million, is the leading position holder in the company.
Here is what Old West Investment Management had to say about Bunge Limited (NYSE:BG) in its 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)
