MDLZ Should I Buy
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Mondelez International Inc (MDLZ) is not a strong buy at the moment for a beginner investor with a long-term focus. The stock faces near-term headwinds, including declining financial performance, cautious analyst sentiment, and negative technical indicators. While the company has a strong brand and long-term growth potential, the current price trend and lack of clear positive catalysts suggest holding off on investment for now.
The technical indicators for MDLZ are bearish. The MACD is negatively expanding (-0.391), the RSI (33.441) is neutral but leaning towards oversold territory, and the moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its key support level (S1: 58.171), but there is no clear signal for a reversal.
Mondelez's focus on growth-accretive acquisitions in the snacking category could drive long-term growth.
Falling cocoa prices may provide margin relief in the future.
The company has a history of strong brand equity and global distribution capabilities.
Recent financial performance is weak, with a 61.89% drop in net income and a 60.77% decline in EPS in Q4
Analyst sentiment is mixed, with multiple firms lowering price targets and highlighting near-term challenges.
Congress trading data shows 4 sale transactions and no purchases, indicating cautious sentiment.
The Iran conflict may disrupt supply chains and increase costs, negatively impacting consumer staples companies like Mondelez.
In Q4 2025, Mondelez reported a 9.29% YoY increase in revenue to $10.5 billion. However, net income dropped by 61.89% YoY to $665 million, and EPS fell by 60.77% YoY to $0.51. Gross margin also decreased significantly to 27.83%, down 27.22% YoY. These results indicate significant margin pressures and declining profitability.
Analyst sentiment is mixed. While some firms raised price targets (e.g., Morgan Stanley to $66, TD Cowen to $65), others lowered them (e.g., Bernstein to $73, JPMorgan to $67). Analysts highlight near-term challenges, including pricing pressures, EU disruptions, and cautious FY26 guidance. The consensus suggests a transitional year with potential for improvement in the second half of 2026.
