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Mondelez (MDLZ) Gains But Lags Market: What You Should Know

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Mondelez (MDLZ - Free Report) closed the most recent trading day at $69.72, moving +0.2% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.44%. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 5.21%.

Coming into today, shares of the maker of Oreo cookies, Cadbury chocolate and Trident gum had gained 6.46% in the past month. In that same time, the Consumer Staples sector gained 2.41%, while the S&P 500 gained 2.28%.

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%. Our most recent consensus estimate is calling for quarterly revenue of $8.44 billion, up 8.76% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.16 per share and revenue of $34.23 billion, which would represent changes of +7.12% and +8.67%, respectively, from the prior year.

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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 0.25% 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 21.99. Its industry sports an average Forward P/E of 18.29, so we one might conclude that Mondelez is trading at a premium comparatively.

It is also worth noting that MDLZ currently has a PEG ratio of 3.08. 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. The Food - Miscellaneous was holding an average PEG ratio of 2.72 at yesterday's closing price.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 148, putting it in the bottom 42% 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.


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