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

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General Mills (GIS - Free Report) closed the most recent trading day at $65.89, moving -0.39% from the previous trading session. This change lagged the S&P 500's 0.67% gain on the day. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 1.14%.

Heading into today, shares of the maker of Cheerios cereal, Yoplait yogurt and other packaged foods had lost 8.97% over the past month, lagging the Consumer Staples sector's loss of 3.7% and the S&P 500's loss of 0.73% in that time.

Investors will be hoping for strength from General Mills as it approaches its next earnings release, which is expected to be September 20, 2023. On that day, General Mills is projected to report earnings of $1.09 per share, which would represent a year-over-year decline of 1.8%. Meanwhile, our latest consensus estimate is calling for revenue of $4.91 billion, up 4.08% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.49 per share and revenue of $20.67 billion. These totals would mark changes of +4.42% and +2.85%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for General Mills. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.3% lower within the past month. General Mills is currently a Zacks Rank #4 (Sell).

Investors should also note General Mills's current valuation metrics, including its Forward P/E ratio of 14.73. This valuation marks a discount compared to its industry's average Forward P/E of 15.78.

We can also see that GIS currently has a PEG ratio of 2.2. 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. GIS's industry had an average PEG ratio of 2.45 as of yesterday's close.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 155, putting it in the bottom 39% 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.

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