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General Mills (GIS) Gains As Market Dips: What You Should Know

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In the latest trading session, General Mills (GIS - Free Report) closed at $52.59, marking a +0.42% move from the previous day. This change outpaced the S&P 500's 0.2% loss on the day. At the same time, the Dow lost 0.17%, and the tech-heavy Nasdaq lost 0.38%.

Prior to today's trading, shares of the maker of Cheerios cereal, Yoplait yogurt and other packaged foods had gained 0.77% over the past month. This has lagged the Consumer Staples sector's gain of 1.91% and outpaced the S&P 500's gain of 0.33% in that time.

Investors will be hoping for strength from GIS as it approaches its next earnings release, which is expected to be June 26, 2019. In that report, analysts expect GIS to post earnings of $0.76 per share. This would mark a year-over-year decline of 3.8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.23 billion, up 8.75% from the year-ago period.

Investors should also note any recent changes to analyst estimates for GIS. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.26% higher. GIS is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, GIS currently has a Forward P/E ratio of 15.69. This valuation marks a discount compared to its industry's average Forward P/E of 18.26.

We can also see that GIS currently has a PEG ratio of 2.24. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Food - Miscellaneous was holding an average PEG ratio of 2.39 at yesterday's closing price.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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