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Mondelez (MDLZ) Stock Sinks As Market Gains: What You Should Know

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Mondelez (MDLZ - Free Report) closed at $64.52 in the latest trading session, marking a -0.74% move from the prior day. This change lagged the S&P 500's 1.1% gain on the day. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq gained 6.59%.

Heading into today, shares of the maker of Oreo cookies, Cadbury chocolate and Trident gum had lost 2.74% over the past month, lagging the Consumer Staples sector's loss of 1.44% and the S&P 500's gain of 4.58% in that time.

Mondelez will be looking to display strength as it nears its next earnings release, which is expected to be January 31, 2023. On that day, Mondelez is projected to report earnings of $0.71 per share, which would represent no growth from the year-ago period. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.37 billion, up 9.34% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Mondelez. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.93% higher within the past month. Mondelez currently has a Zacks Rank of #2 (Buy).

In terms of valuation, Mondelez is currently trading at a Forward P/E ratio of 20.78. For comparison, its industry has an average Forward P/E of 18.73, which means Mondelez is trading at a premium to the group.

Also, we should mention that MDLZ has a PEG ratio of 3.07. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MDLZ's industry had an average PEG ratio of 2.82 as of yesterday's close.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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