Zacks Upgrades Mondelez (MDLZ) to Buy | Finance | Finance

Mondelēz is an American multinational food company with about 80,000 employees working worldwide . The company specializes in producing chocolate, cookies, and candy with annual revenue of about 26 billion dollars and operates in about 170 countries (including Vietnam).

The Zacks Rank is based solely on changes in a company's earnings expectations. The ranking tracks EPS estimates for the current and following fiscal years from sell-side analysts covering the stock, using an average measure - the Zacks Consensus Estimate.

The Zacks Rating system’s ability to analyze the impact of changes in corporate earnings expectations on short-term stock price movements makes it very useful for individual investors. It’s difficult to make decisions based on individual Wall Street analyst rating upgrades. These updates are largely driven by subjective factors that are difficult to see and measure in real time.

The influence of institutional investors also contributes to this relationship. This is because large investors use earnings data and earnings estimates to calculate the fair value of a company's stock. Increasing or decreasing earnings estimates in their valuation models simply results in a higher or lower fair value for a stock, and institutional investors often base their buying or selling decisions on that. The large purchases and sales by these investors then lead to stock price movements.

So for Mondelez International, rising earnings estimates and a rating upgrade essentially mean that the company’s business is improving. And investors appreciating these positive business trends should push the stock higher.

For the fiscal year ending December 2024, the maker of Oreo cookies, Cadbury chocolate and Trident gum is expected to earn $3.51 per share, up 10% from the figure reported a year ago.

Analysts have been steadily raising their earnings estimates for Mondelez. Over the past three months, the Zacks Consensus Estimate for the company has increased by 1.3%.

Unlike Wall Street analysts who are often overly optimistic, whose ratings tend to favor favorable recommendations, the Zacks rating system maintains an equal ratio of 'Buy' and 'Sell' ratings on all 4,000+ stocks at any given time.

Regardless of market conditions, only the top 5% of stocks on Zacks are rated 'Strong Buy' and the next 15% are rated 'Buy'. Therefore, a stock's ranking in the top 20% of stocks on Zacks indicates superior earnings estimate revisions for the company, making it a strong investment choice that could outperform the market in the near term.

The upgrade to a Zacks Rank #2 puts Mondelez International in the top 20% of stocks covered by this site, and earnings estimate revisions imply that the stock could move higher in the near term.

Source: https://diaoc.nld.com.vn/zacks-nang-xep-hang-mondelez-mdlz-nen-mua-196240318140004946.htm