Monday, October 27, 2014

Mondelez International (MDLZ) Stock Is Climbing After Being Upgraded Today

NEW YORK (TheStreet) -- Mondelez International shares are up 0.47% to $34.54 on Monday after analysts at RBC Capital upgraded the stock to "outperform" from "sector perform." The firm made a valuation call on the Oreo cookies and Cadbury chocolates snack manufacturer following a recent pullback that RBC Capital says makes for an attractive entry point for investors. Must Read: Warren Buffett's 25 Favorite Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. The firm believes that the company will meet its profit margin goals for the current quarter, while the company is expected to release the financial results of its previous quarter on November 5. Analysts are expecting earnings of 40 cents per share on revenue of $8.4 billion. TheStreet Ratings team rates MONDELEZ INTERNATIONAL INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation: "We rate MONDELEZ INTERNATIONAL INC (MDLZ) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself." Highlights from the analysis by TheStreet Ratings Team goes as follows: MONDELEZ INTERNATIONAL INC has improved earnings per share by 9.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, MONDELEZ INTERNATIONAL INC increased its bottom line by earning $1.28 versus $0.87 in the prior year. This year, the market expects an improvement in earnings ($1.67 versus $1.28). Net operating cash flow has increased to $945.00 million or 17.68% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 7.60%. The current debt-to-equity ratio, 0.57, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that MDLZ's debt-to-equity ratio is low, the quick ratio, which is currently 0.51, displays a potential problem in covering short-term cash needs. 39.43% is the gross profit margin for MONDELEZ INTERNATIONAL INC which we consider to be strong. Regardless of MDLZ's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 7.37% trails the industry average. MDLZ, with its decline in revenue, slightly underperformed the industry average of 0.5%. Since the same quarter one year prior, revenues slightly dropped by 1.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share. You can view the full analysis from the report here: MDLZ Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.


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