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Mondelez (MDLZ) Stock Moves -0.73%: What You Should Know

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In the latest trading session, Mondelez (MDLZ - Free Report) closed at $58.61, marking a -0.73% move from the previous day. This change was narrower than the S&P 500's 3.25% loss on the day. At the same time, the Dow lost 2.42%, and the tech-heavy Nasdaq lost 0.41%.

Heading into today, shares of the maker of Oreo cookies, Cadbury chocolate and Trident gum had lost 3.12% over the past month, outpacing the Consumer Staples sector's loss of 7.55% and the S&P 500's loss of 5.62% in that time.

Investors will be hoping for strength from Mondelez as it approaches its next earnings release. On that day, Mondelez is projected to report earnings of $0.64 per share, which would represent a year-over-year decline of 3.03%. Meanwhile, our latest consensus estimate is calling for revenue of $6.8 billion, up 2.37% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.97 per share and revenue of $29.93 billion. These totals would mark changes of +3.48% and +4.22%, respectively, from last year.

Any recent changes to analyst estimates for Mondelez should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.04% lower. Mondelez is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Mondelez currently has a Forward P/E ratio of 19.9. For comparison, its industry has an average Forward P/E of 17.31, which means Mondelez is trading at a premium to the group.

We can also see that MDLZ currently has a PEG ratio of 2.93. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Food - Miscellaneous stocks are, on average, holding a PEG ratio of 2.37 based on yesterday's closing prices.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 147, putting it in the bottom 42% 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.

To follow MDLZ in the coming trading sessions, be sure to utilize Zacks.com.


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