Trade-Ideas: Mondelez International (MDLZ) Is Today's Unusual Social Activity Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Mondelez International ( MDLZ) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Mondelez International as such a stock due to the following factors:

  • MDLZ has 11x the normal benchmarked social activity for this time of the day compared to its average of 2.25 mentions/day.
  • MDLZ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $326.8 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on MDLZ:

Mondelez International, Inc., together with its subsidiaries, manufactures and markets snack food and beverage products worldwide. The stock currently has a dividend yield of 1.6%. MDLZ has a PE ratio of 23.0. Currently there are 8 analysts that rate Mondelez International a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for Mondelez International has been 8.5 million shares per day over the past 30 days. Mondelez International has a market cap of $62.1 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.59 and a short float of 0.7% with 1.47 days to cover. Shares are up 1.1% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Mondelez International as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • MDLZ's revenue growth has slightly outpaced the industry average of 0.1%. Since the same quarter one year prior, revenues slightly increased by 1.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 57.0% when compared to the same quarter one year prior, rising from $652.00 million to $1,024.00 million.
  • The debt-to-equity ratio is somewhat low, currently at 0.62, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Despite the fact that MDLZ's debt-to-equity ratio is low, the quick ratio, which is currently 0.65, displays a potential problem in covering short-term cash needs.
  • The strong earnings growth this company has enjoyed -- up -- has apparently played a role in driving up its share price by a solid 30.72%. In addition, the rise in the general market has likely contributed to this stock's strong performance during this past year.We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • MONDELEZ INTERNATIONAL INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MONDELEZ INTERNATIONAL INC reported lower earnings of $0.87 versus $1.99 in the prior year. This year, the market expects an improvement in earnings ($1.56 versus $0.87).

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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