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General Mills (GIS) Stock Drops Despite Market Gains: Important Facts to Note

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General Mills (GIS - Free Report) closed the latest trading day at $63.42, indicating a -0.25% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.1%. On the other hand, the Dow registered a gain of 0.24%, and the technology-centric Nasdaq increased by 0.29%.

The the stock of maker of Cheerios cereal, Yoplait yogurt and other packaged foods has fallen by 1.93% in the past month, lagging the Consumer Staples sector's gain of 6.68% and the S&P 500's gain of 10.68%.

Market participants will be closely following the financial results of General Mills in its upcoming release. The company plans to announce its earnings on December 20, 2023. It is anticipated that the company will report an EPS of $1.16, marking a 5.45% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $5.39 billion, indicating a 3.2% upward movement from the same quarter last year.

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.

Investors should also note any recent changes to analyst estimates for General Mills. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, General Mills holds a Zacks Rank of #3 (Hold).

Looking at its valuation, General Mills is holding a Forward P/E ratio of 14.19. This expresses a discount compared to the average Forward P/E of 16.6 of its industry.

One should further note that GIS currently holds a PEG ratio of 2.14. 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 average PEG ratio for the Food - Miscellaneous industry stood at 2.42 at the close of the market yesterday.

The Food - Miscellaneous industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 138, placing it within the bottom 46% of over 250 industries.

The Zacks Industry Rank is ordered 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.

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

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