Technicalspeculator.com Trade-of-the-Week: Mondelez International Inc. (MDLZ)

By Tech_Spec
10-February-2019 10:20:04 PM
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This week’s trade comes from the consumer staples sector, food products industry of NASDAQ.  The highlights of this stock are more technical than fundamental.  Though the P/E, both trailing and forward are respectable and P/S is at a level that is interesting, what caught our attention was the breakout of the massive 22-month consolidation.  This tells us that institutional investors are expecting much higher returns over the next 12 months.

Company Profile:

Mondelez International, Inc., through its subsidiaries, manufactures and markets snack food and beverage products worldwide. It offers biscuits, including cookies, crackers, and salted snacks; chocolates; and gums and candies, as well as various cheese and grocery, and powdered beverage products. The company’s primary snack brand portfolio includes Cadbury, Milka, and Toblerone chocolates; Oreo, belVita, and LU biscuits; Halls candies; and Trident gums and Tang powdered beverages. It sells its products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores, and other retail food outlets through direct store delivery, company-owned and satellite warehouses, distribution centers, and other facilities, as well as through independent sales offices and agents, and e-commerce platforms.

Fundamentals:

Trailing P/E: 20.57, Forward P/E: 17.43

EPS: 2.28, PEG: 2.75

P/S: 2.63, P/B: 2.67

Profit margin: 13.03%, Operating margin: 15.74%

ROA: 4.06%, ROE: 13.08%

Qrtly earnings growth: 2.60%, Current ratio: 0.45

Additional fundamental data: https://finance.yahoo.com/quote/MDLZ/key-statistics?p=MDLZ

Technicals: 

Recently broke out of a massive 22-months consolidation.

New 52-week high, New all-time high

Buying momentum (RSI) is positive and rising, Buying volume is neutral

1st price support is at $45.25, The safety stop is at $44.90

 The target is $51.90

Suggested buying approach: Buy at the current level.  Should the stock pull back, as long as the price is above the safety stop, wait for confirmation of support and then add to the position if desired.  Always use a 3% trailing stop.  

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Author: Tech_Spec

Canada’s only Master of Financial Technical Analysis (MFTA). This 4 – 5 year program offered by the International Federation of Technical Analysts (IFTA) in England is regarded as the global standard. • Instructor of Technical Analysis for the Canadian Securities Institute (CSI). My role is teaching market analysis to industry professionals. • Financial Technical Analyst offering 25 years experience in the financial and investment service industry. • Editor and owner of the Technicalspeculator.com, an on-line independent financial market research and newsletter website. • Registered Securities Advisor

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