Trade-Ideas: Mondelez International (MDLZ) Is Today's Strong On High Relative Volume 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 a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Mondelez International as such a stock due to the following factors:

  • MDLZ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $309.4 million.
  • MDLZ has traded 2.3 million shares today.
  • MDLZ is trading at 3.64 times the normal volume for the stock at this time of day.
  • MDLZ is trading at a new high 5.02% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on MDLZ:

Mondelez International, Inc., through its subsidiaries, manufactures and markets snack food and beverage products worldwide. The stock currently has a dividend yield of 1.7%. MDLZ has a PE ratio of 31.6. Currently there are 10 analysts that rate Mondelez International a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Mondelez International has been 7.3 million shares per day over the past 30 days. Mondelez International has a market cap of $59.7 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 1.06 and a short float of 0.5% with 0.97 days to cover. Shares are down 0.8% year-to-date as of the close of trading on Tuesday.

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 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 ratings report include:
  • 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 -7.94%.
  • 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 0.4%. 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.

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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