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

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In the latest trading session, General Mills (GIS - Free Report) closed at $79.11, marking a -0.62% move from the previous day. This change lagged the S&P 500's daily gain of 0.07%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 1.47%.

Prior to today's trading, shares of the maker of Cheerios cereal, Yoplait yogurt and other packaged foods had gained 5.46% over the past month. This has outpaced the Consumer Staples sector's loss of 0.66% and the S&P 500's loss of 2% in that time.

General Mills will be looking to display strength as it nears its next earnings release, which is expected to be March 23, 2023. In that report, analysts expect General Mills to post earnings of $0.90 per share. This would mark year-over-year growth of 7.14%. Our most recent consensus estimate is calling for quarterly revenue of $4.9 billion, up 7.95% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.18 per share and revenue of $19.99 billion, which would represent changes of +6.09% and +5.27%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for General Mills. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.27% higher. General Mills is currently a Zacks Rank #2 (Buy).

Looking at its valuation, General Mills is holding a Forward P/E ratio of 19.06. This represents a premium compared to its industry's average Forward P/E of 18.17.

It is also worth noting that GIS currently has a PEG ratio of 2.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Food - Miscellaneous was holding an average PEG ratio of 2.62 at yesterday's closing price.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 81, putting it in the top 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow GIS in the coming trading sessions, be sure to utilize Zacks.com.


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