Mondelez International, Inc. (MDLZ) is a global snacks leader headquartered in Chicago, Illinois. Valued at $94.27 billion by market cap, Mondelez is recognized for its contributions to the food and beverage sector, particularly in snacking and convenience foods. With well-known brands like Oreo, Cadbury, and Nabisco, Mondelez has a significant presence in markets worldwide, delivering quality products to millions of consumers every day.
Shares of the multinational confectionery have significantly underperformed the broader market over the past 52 weeks. MDLZ has declined 4.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 18.2%. In 2024, shares of MDLZ are down 3%, compared to SPX's 11.5% gains on a YTD basis.
Zooming in further, MDLZ underperformed the First Trust Nasdaq Food & Beverage ETF (FTXG). The exchange-traded fund has gained 1.3% on the YTD basis compared to MDLZ’s loss during the same period.
On Jul. 30, Mondelez International reported Q2 earnings results. The company’s revenue was $8.34 billion, missing the Street estimates of $8.39 billion. The company’s profit stood at $601 million. Also, its EPS came in at $0.86, beating the Street forecasts of $0.78. However, the stock gained 1.9% in the session following the day the results were released.
For the current fiscal year, ending in December, analysts expect MDLZ’s EPS to grow by 9.7% to $3.50 on a diluted basis. The company has consistently exceeded consensus estimates in the last four quarters.
Among the 21 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 19 “Strong Buy” ratings, one “Moderate Buy,” and one “Hold.”
This configuration is slightly more bullish than three months before, with 18 analysts suggesting a "Strong Buy" rating.
On Jul. 31, Bank of America Securities analyst Bryan Spillane maintained a “Buy” rating for Mondelez.
The mean price target of $78 represents a premium of 11% to MDLZ's current levels. The Street-high price target of $88 suggests an upside potential of 25.2%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
