Mondelez International, Inc. Is (MDLZ) the best packaged food stock to buy now?


Recently I published the list 10 best packaged food stocks to buy now. In this article, we will introduce Mondelez International, Inc. (NASDAQ:mdlz) Confront other best packaged food stocks to buy now.

According to a report by Grand View Research, the US packaged food market was $1.03 trillion in 2021. It is expected to grow at a combined annual growth rate (CAGR) of 4.8% between 2022 and 2030. Furthermore, the increase in e-commerce sales in the US is another important factor supporting the sale of packaged foods nationwide. Growth in innovations in plant-based products, food packaging, healthy ingredients and bold flavors is expected to continue to drive this growth in the US over the next few years.

Read again: 14 best farmland and farm stocks are now buying and According to analysts, 10 best consumer staple stocks to buy.

On April 8, Bofa Securities analysts Bryan D. Spillane, Lisa K. Lewandowski, and Peter T. Galbo released their findings on the consumer staples industry and expected performance in the event of a recession. Analysts have reiterated that consumer staples have historically surpassed the S&P 500 as a sector in most of the recent recession. This trend shows the sector’s defenses. However, analysts also warned that current market conditions should be considered, including low volume growth and prolonged high prices, as they could affect the sector’s resilience in future recessions. Despite these concerns, consumer staples may help to form an attractive sector for investors and professionals and maintain multiples of valuation, due to limited exposure to recent tariffs.

During the recession, stock prices in the Consumer Staples sector are usually affected by earnings per share (EPS) rather than sales growth. Yahoo! Finance reported that sector analysis highlights EPS, which accounts for more than 90% of stock price movements across the central subsector, including packaged food, beverages, household and personal care, and tobacco. Analysts also pointed out that these trends reflect the importance of earning power in determining equity performance in volatile and uncertain economic situations.

Yahoo! Finance also reported that top-performing stocks in the consumer staples sector are likely to share three common characteristics. These include the solid balance sheet that could maintain stock buybacks to increase EPS, the flexibility of profits to offset increasing costs and revenue pressures, and the presence of strong manufacturing in the US to constrain tariff-related inflation.

Leave a Reply

Your email address will not be published. Required fields are marked *