Mondelez International (MDLZ) is back in focus after a voluntary recall of certain CHIPS AHOY! Baked Bites Brookie packs, following the discovery of corn starch clumps that could create a choking risk.

The recall lands after a busy stretch for Mondelez, with the Board recently affirming its regular dividend and the stock logging a 90 day share price return of minus 12.69 percent. The five year total shareholder return of 5.82 percent signals slow but positive compounding rather than strong momentum.

If this safety hiccup has you reassessing your snacking playbook, it might be a good moment to compare Mondelez with other resilient food and healthcare stocks for diversified defensive exposure.

With shares down this year but still delivering steady earnings and dividends, investors now face a key question: is Mondelez trading at a genuine discount, or is the market already pricing in its growth potential?

Most Popular Narrative Narrative: 20.7% Undervalued

With Mondelez last closing at $54.62 against a narrative fair value near the high $60s, the story points to a sizable valuation gap that hinges on earnings power and margin recovery.

The analysts have a consensus price target of $74.417 for Mondelez International based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $88.0, and the most bearish reporting a price target of just $67.0.

Curious why steady revenue growth, rising margins and a richer future earnings multiple could justify a higher price? The narrative spells out the full playbook.

Result: Fair Value of $68.85 (UNDERVALUED)

However, elevated cocoa costs and softer consumer demand, especially in North America and Europe, could squeeze margins and delay the market’s re-rating.

Build Your Own Mondelez International Narrative

If you see the numbers differently or want to test your own thesis against the data, you can build a personalized narrative in under three minutes: Do it your way.

A great starting point for your Mondelez International research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

Ready for more investing angles?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.