12 Best Depressed Stocks to Invest in Now

4) Mondelez International, Inc. (NASDAQ:MDLZ)

52-week Low: $55.97

Price as of 24 January: $57.42

Number of Hedge Fund Holders: 51

Mondelez International, Inc. (NASDAQ:MDLZ) manufactures, markets, and sells snack food and beverage products. The company’s stock has been facing pressures primarily because of higher input costs and geopolitical headwinds. Mondelez International, Inc. (NASDAQ:MDLZ) continues to address significant input cost headwinds because of elevated cocoa prices, which might remain elevated into early 2025. Despite cost-management efforts, the chocolate segment’s profitability is expected to fall short of historical levels, mainly in H1 2025. Therefore, sustained cost pressures can impact margins.

That being said, Piper Sandler maintained an “Overweight” rating on the shares of Mondelez International, Inc. (NASDAQ:MDLZ). Despite the challenges due to the rising cost of cocoa, it is expected to have its cocoa needs covered for 2025. Furthermore, the company continues to take proactive measures to manage its supply chain. Amidst inflationary pressures and rising input costs, the company has been implementing strategic pricing actions throughout its markets.

Mondelez International, Inc. (NASDAQ:MDLZ)’s strong brand equity offers some pricing power, enabling it to pass on some portion of higher costs to consumers without significant market share loss. The company’s diverse product portfolio also allows it for strategic pricing throughout different product categories and price points, supporting the maintenance of overall margins. The potential for margin improvement with the help of pricing strategies remains important considering higher cocoa costs.