Back to top

Image: Bigstock

Mondelez (MDLZ) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

Mondelez (MDLZ - Free Report) closed at $62.91 in the latest trading session, marking a -1.02% move from the prior day. This move lagged the S&P 500's daily loss of 0.75%. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, added 0.15%.

Coming into today, shares of the maker of Oreo cookies, Cadbury chocolate and Trident gum had lost 1.75% in the past month. In that same time, the Consumer Staples sector lost 1.54%, while the S&P 500 gained 0.32%.

Wall Street will be looking for positivity from Mondelez as it approaches its next earnings report date. On that day, Mondelez is projected to report earnings of $0.65 per share, which would represent a year-over-year decline of 1.52%. Our most recent consensus estimate is calling for quarterly revenue of $6.8 billion, up 2.45% from the year-ago period.

MDLZ's full-year Zacks Consensus Estimates are calling for earnings of $2.98 per share and revenue of $29.94 billion. These results would represent year-over-year changes of +3.83% and +4.25%, respectively.

It is also important to note the recent changes to analyst estimates for Mondelez. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.58% lower within the past month. Mondelez is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Mondelez is holding a Forward P/E ratio of 21.34. This represents a premium compared to its industry's average Forward P/E of 18.26.

Also, we should mention that MDLZ has a PEG ratio of 3.14. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Food - Miscellaneous was holding an average PEG ratio of 2.5 at yesterday's closing price.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 184, which puts it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Mondelez International, Inc. (MDLZ) - free report >>

Published in