While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
MONDELEZ INTERNATIONAL (MDLZ) shows a strong technical setup with a 7/10 rating and a high-quality consolidation pattern, making it a breakout candidate for traders.
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Packaged snacks company Mondelez (NASDAQ:MDLZ) met Wall Street’s revenue expectations in Q1 CY2025, but sales were flat year on year at $9.31 billion. Its non-GAAP profit of $0.74 per share was 12.2% above analysts’ consensus estimates.
The S&P 500 (^GSPC) is often seen as a benchmark for strong businesses, but that doesn’t mean every stock is worth owning.
Some companies face significant challenges, whether it’s stagnating growth, heavy debt, or disruptive new competitors.
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Mondelez (NASDAQ:MDLZ) and the rest of the shelf-stable food stocks fared in Q1.
Wall Street’s bearish price targets for the stocks in this article signal serious concerns.
Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.
Regarded as defensive investments, consumer staples stocks are generally safe bets in choppy markets. Unfortunately, the sector hasn’t provided much protection lately as it pulled back by 14% over the past six months. This performance was worse than the S&P 500’s 6.2% loss.
While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns.
Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.
