Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, December 13, 2024

Article Excerpt

MONDELEZ INTERNATIONAL INC., $61.93, Nasdaq symbol MDLZ, is a buy. The company makes cookies and crackers (Oreo, Ritz), chocolate bars (Cadbury, Toblerone), candy (Clorets, Sour Patch Kids) and Halls cough drops. This week, Mondelez announced a new plan to buy back up to $9 billion of its common shares by December 31, 2027. That target is equal to 11% of its $83.8 billion market cap. For investors, share buybacks reduce the total number of shares outstanding. That boosts earnings per share since profit is divided among fewer shares. The higher per-share earnings make the stock more attractive to investors and helps to increase the share price. Mondelez is also reportedly interested in buying rival The Hershey Co. (New York symbol HSY), whose market cap is $35.8 billion. A combination would give Mondelez about 16% of the global confectionery market, and 27% of North America’s market. However, a takeover would require the approval of the charitable trust that controls Hershey through special shares that give it about…