With shares of Mondelez International (NASDAQ:MDLZ) trading at around $25.94, is MDLZ an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
C = Catalyst for the Stock’s Movement
Mondelez International’s stock hasn’t performed well this year, which has a lot to do with a bad Q3. Consumer weakness and currency issues played major roles.
A weak and health-conscious consumer is often touted as a reason to stay away from Mondelez International, but the recent drop in the stock price most likely presents an opportunity. In regards to a health-conscious consumer, that might be a trend in the United States, but that’s not the case internationally. Mondelez International has a big presence in emerging markets, and people in those markets love their Oreo cookies and Ritz crackers. If you recently had your first taste of high-quality cookies, crackers, chocolate, gum, and/or biscuits, would you stop right away because you were thinking about your BMI and hot yoga class that afternoon? No. You would crave those tasty sensations once again. After all, what’s life without pleasure?
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As long as the global economy can stay afloat, Mondelez International has a great growth opportunity ahead. Currently, long-term organic sales growth is expected to be 5.7 percent.
Mondelez International also aims to grow through mobile. Mondelez International is investing 10 percent of its marketing budget on mobile. The goal is to become one of the top mobile marketers in the world. How? Through their Mobile Futures program. In this program, Mondelez International will pair its brands with select start-ups to form a culture of intrapreneurship. Mondelez International aims to incubate mobile ventures within 90 days.
Let’s take a look at some more important numbers.