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Investing in chocolate. Shares Mondelez gained momentum

Mondelez International (NASD: MDLZ) is an American multinational company, the world’s largest food company, including snacks, beverages and convenience foods.

The company’s products are familiar to absolutely everyone and can be found in any store in 150 countries of the world under the brands Cadbury, Milka, Toblerone, Oreo, Dirol, etc.

Fundamental analysis

Based on a published report, Mondelez International Inc. revenues. in fiscal year 2018, they increased by 0.16% compared with 2017 (to $ 25.94 billion). Net profit increased by 19.55% (to $ 3.38 billion). Earnings per share increased by 25.82% (EPS = 2.28). On these positive data, the company’s shares since January showed an increase of 25.7%, while the industry growth was only 9.7%. Dividend yield at the moment is 2.1% per annum.

Despite the fairly strong competition in the industry, the company has several points of growth. First of all, this is a business expansion through the acquisition of rapidly developing brands. In July 2018, the company completed the acquisition of a 13.8% stake in Keurig Dr Pepper. Prior to this, Mondelez completed the buyout of Tate’s Bake Shop, one of the fastest growing biscuit brands in the United States.

To enhance its presence in digital media, the company has entered into strategic partnerships with Facebook and Amazon. In addition, Mondelez introduces new technologies to reduce costs in the production and transportation of products. The positive result of such initiatives is already noticeable in the report for the fourth quarter of 2018.

Technical analysis

Mondelez International
Mondelez International

From a technical point of view, the shares made a way out of a three-year outset with a classical retest of the level of support. At the moment, the level of $ 50 is a strong resistance. One of the drivers for overcoming this level can be a report for the first quarter of 2019, expected on April 30. The immediate goal is at $ 55 per share.

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