Mondelez triggers a buy signal at $63. Could this be a chance?

Mondelez International Inc. (NASDAQ:MDLZ) is a leader in the snacking business. It is among the few firms that remained resilient and bullish, as many stocks struggled under bearish pressures. With investors seeking buy chances in the market, we think Mondelez avails that opportunity at $63.

Mondelez is a wide moat consumer defensive stock. Demand remains even as consumption declines for many other industries. Zacks research rates Mondelez as a B-grade value stock with a C-score on growth. The only limitation for the company is low momentum on price. The low momentum is directly associated with the expectations for EPS growth at 7.42% in the coming year.

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A price analysis indicates a PEG ratio of 2.79. While a PEG ratio above 1 is considered overvalued, we observe that many value stocks will have the ratio significantly higher, sometimes closer to 5. For that reason, we consider Mondelez to perform significantly better than many firms in its category.

Mondelez is definitively bullish, the linear channel confirms

The price chart of Mondelez indicates the stock has been on a definitive bullish trend. The pattern is guided by a linear regression channel and the 50-day moving average. Buying signals are triggered every time the 10-day moving average interacts with the 50-day.

This coincides with the lower limit of the linear regression channel. The pattern is supported by the MACD indicator.

At a price of $63, Mondelez is a strong buy. The price triggered the buying signals. Besides, the MACD line appears to have changed direction as an early indication that the bulls are beginning.

Summary

Mondelez International is an attractive value stock. Investors should buy the stock at the prevailing price of $63. The price is at the 10-day and 50-day moving averages equilibrium, signaling a buying point.

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