Has Mondelez International (MDLZ) Outpaced Other Consumer Staples Stocks This Year?

Mondelez International (MDLZ) has significantly outpaced the Consumer Staples sector year-to-date, delivering a 12.6% return against the sector's 4.1% average, supported by a 4.2% increase in full-year EPS estimates and a Zacks Rank #2 (Buy). Carlsberg AS (CABGY) also demonstrated strong outperformance, returning 44.8% YTD with a 9.3% rise in current year EPS estimates and a Zacks Rank #1 (Strong Buy). Both companies exhibit robust individual strength and improving outlooks within the Consumer Staples space, warranting continued investor attention.

Analysis

Mondelez International (MDLZ) is exhibiting significant relative strength, with a year-to-date return of 12.6% that substantially outpaces both the broader Consumer Staples sector's 4.1% gain and its direct Food - Miscellaneous industry peer group, which has declined 5.4%. This outperformance is fundamentally supported by an improving earnings outlook, evidenced by a 4.2% upward revision in the Zacks Consensus Estimate for its full-year earnings over the past 90 days, culminating in a Zacks Rank of #2 (Buy). For comparison, Carlsberg AS (CABGY) shows even more potent momentum within the same sector, delivering a 44.8% year-to-date return, backed by a 9.3% increase in its current-year EPS estimate and a top-tier Zacks Rank of #1 (Strong Buy). The strong performance of both companies is particularly notable given the weak positioning of the overall Consumer Staples sector (ranked #15 of 16), indicating that their positive trajectory is driven by company-specific factors rather than a broader industry tailwind.

Key Decisions for Investors

• Given its significant outperformance against a declining industry and a positive shift in analyst earnings estimates, investors could consider Mondelez a strong candidate for a long position within the Consumer Staples sector.
• The positive momentum in earnings estimate revisions is a key driver of the investment thesis; therefore, investors should closely monitor these estimates for any signs of deceleration or reversal.
• For those seeking higher-momentum plays, Carlsberg AS presents an even stronger case with a #1 (Strong Buy) rank and more substantial upward earnings revisions, warranting consideration as a higher-conviction long.
• The outperformance of these names in a poorly ranked sector suggests they can serve as alpha-generating positions, potentially outperforming even if the broader Consumer Staples sector remains subdued.