Mondelez (MDLZ) Dips More Than Broader Markets: What You Should Know
Mondelez (MDLZ) closed at $64.19 in the latest trading session, marking a -1.52% move from the prior day. This change lagged the S&P 500's 0.47% loss on the day. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, lost 15.51%.
Heading into today, shares of the maker of Oreo cookies, Cadbury chocolate and Trident gum had lost 0.4% over the past month, outpacing the Consumer Staples sector's loss of 2.47% and the S&P 500's loss of 2.53% in that time.
Mondelez will be looking to display strength as it nears its next earnings release. In that report, analysts expect Mondelez to post earnings of $0.80 per share. This would mark a year-over-year decline of 4.76%. Meanwhile, our latest consensus estimate is calling for revenue of $8.46 billion, up 9% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.17 per share and revenue of $34.34 billion. These totals would mark changes of +7.46% and +9.04%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Mondelez. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.42% higher. Mondelez currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Mondelez is currently trading at a Forward P/E ratio of 20.55. This valuation marks a premium compared to its industry's average Forward P/E of 17.98.
Investors should also note that MDLZ has a PEG ratio of 2.88 right now. 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 2.63 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 73, which puts it in the top 29% 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 Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report
