Mondelez (MDLZ) closed the most recent trading day at $73.28, moving -1.36% from the previous trading session. This change lagged the S&P 500's 0.24% gain on the day. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 5.73%.
Coming into today, shares of the maker of Oreo cookies, Cadbury chocolate and Trident gum had lost 4.89% in the past month. In that same time, the Consumer Staples sector lost 5.29%, while the S&P 500 gained 3.56%.
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 $0.70 per share, which would represent year-over-year growth of 4.48%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.17 billion, up 12.3% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.20 per share and revenue of $35.34 billion. These totals would mark changes of +8.47% and +12.2%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Mondelez. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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 remained stagnant. Mondelez is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Mondelez is currently trading at a Forward P/E ratio of 23.23. Its industry sports an average Forward P/E of 18.11, so we one might conclude that Mondelez is trading at a premium comparatively.
We can also see that MDLZ currently has a PEG ratio of 2.91. 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 industry currently had an average PEG ratio of 2.54 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 38, putting it in the top 16% 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.
To follow MDLZ in the coming trading sessions, be sure to utilize Zacks.com.
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