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General Mills (GIS) Registers a Bigger Fall Than the Market: Important Facts to Note

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The most recent trading session ended with General Mills (GIS - Free Report) standing at $65.16, reflecting a -0.18% shift from the previouse trading day's closing. This change lagged the S&P 500's daily loss of 0.08%. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, lost 0.22%.

The the stock of maker of Cheerios cereal, Yoplait yogurt and other packaged foods has risen by 3.55% in the past month, leading the Consumer Staples sector's gain of 1.95% and the S&P 500's gain of 1.42%.

Market participants will be closely following the financial results of General Mills in its upcoming release. The company's upcoming EPS is projected at $1.16, signifying a 5.45% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $5.39 billion, showing a 3.2% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.48 per share and a revenue of $20.64 billion, representing changes of +4.19% and +2.71%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for General Mills. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.09% lower within the past month. Currently, General Mills is carrying a Zacks Rank of #3 (Hold).

Looking at its valuation, General Mills is holding a Forward P/E ratio of 14.57. Its industry sports an average Forward P/E of 16.1, so one might conclude that General Mills is trading at a discount comparatively.

It is also worth noting that GIS currently has a PEG ratio of 2.19. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Food - Miscellaneous industry stood at 2.27 at the close of the market yesterday.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 138, finds itself in the bottom 46% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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