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Time to Buy GE Aerospace (GE) or General Mills (GIS) Stock for More Upside?
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Typically, GE Aerospace (GE - Free Report) , formerly General Electric is a sound investment due to its innovative aviation solutions among other integrated businesses. Similarly, General Mills' (GIS - Free Report) stock tends to be a solid investment option as one of the renowned global consumer food manufacturers.
This year GE Aerospace’s stock has soared +23% with General Mills’ shares up a respectable +8%. With that being said, let's see if it's time for investors to buy stock in these iconic companies for more upside.
Image Source: Zacks Investment Research
Growth Trajectories
Correlating with GE Aerospace’s very impressive YTD rally, annual earnings are projected to soar 64% in fiscal 2024 to $4.61 per share compared to $2.81 a share last year. More impressive, FY25 earnings are expected to climb another 29% to $5.97 per share. On the top line, total sales are forecasted to rise 8% this year and rise another 7% in FY25 to $76.02 billion.
Image Source: Zacks Investment Research
Turning to General Mills, 5% EPS growth is expected in FY24 with FY25 earnings projected to rise another 3% to $4.65 per share. Total sales are forecasted to slightly dip in FY24 to $20.04 billion versus $20.09 billion in 2023. However, FY25 sales are anticipated to rebound and rise 1% to $20.24 billion.
Image Source: Zacks Investment Research
P/E Valuations
Trading around $155 a share, GE Aerospace’s stock trades at 33.9X forward earnings which is noticeably higher than its Zack’s Diversified Operations Industry average of 21.3X and the S&P 500’s 21.9X. However, GE Aerospace is a leader among these multi-sector conglomerates with some noteworthy peers including Honeywell International (HON - Free Report) and 3M (MMM - Free Report) .
Image Source: Zacks Investment Research
As for General Mills, its stock trades at $70 and at a more attractive 15.4X forward earnings multiple. This is pleasantly below the benchmark and the Zacks Food-Miscellaneous Industry average of 17.1X with some of General Mills’ closest competitors being Kraft Heinz (KHC - Free Report) and Conagra Brands (CAG - Free Report) .
Image Source: Zacks Investment Research
Dividend Comparison
In regards to dividends, General Mills’ stock also stands out and has a 3.38% annual yield that tops the S&P 500’s 1.3% with GE Aerospace’s at 0.2% after scaling back its payout following the pandemic.
Image Source: Zacks Investment Research
Bottom Line
The expansive rebound in GE Aerospace’s top and bottom lines has certainly caught investors’ attention along with the blazing price performance in its stock this year. With that being said, General Mills’ reasonable valuation and generous dividend is hard to overlook as well and for now both stocks land a Zacks Rank #3 (Hold).
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Time to Buy GE Aerospace (GE) or General Mills (GIS) Stock for More Upside?
Typically, GE Aerospace (GE - Free Report) , formerly General Electric is a sound investment due to its innovative aviation solutions among other integrated businesses. Similarly, General Mills' (GIS - Free Report) stock tends to be a solid investment option as one of the renowned global consumer food manufacturers.
This year GE Aerospace’s stock has soared +23% with General Mills’ shares up a respectable +8%. With that being said, let's see if it's time for investors to buy stock in these iconic companies for more upside.
Image Source: Zacks Investment Research
Growth Trajectories
Correlating with GE Aerospace’s very impressive YTD rally, annual earnings are projected to soar 64% in fiscal 2024 to $4.61 per share compared to $2.81 a share last year. More impressive, FY25 earnings are expected to climb another 29% to $5.97 per share. On the top line, total sales are forecasted to rise 8% this year and rise another 7% in FY25 to $76.02 billion.
Image Source: Zacks Investment Research
Turning to General Mills, 5% EPS growth is expected in FY24 with FY25 earnings projected to rise another 3% to $4.65 per share. Total sales are forecasted to slightly dip in FY24 to $20.04 billion versus $20.09 billion in 2023. However, FY25 sales are anticipated to rebound and rise 1% to $20.24 billion.
Image Source: Zacks Investment Research
P/E Valuations
Trading around $155 a share, GE Aerospace’s stock trades at 33.9X forward earnings which is noticeably higher than its Zack’s Diversified Operations Industry average of 21.3X and the S&P 500’s 21.9X. However, GE Aerospace is a leader among these multi-sector conglomerates with some noteworthy peers including Honeywell International (HON - Free Report) and 3M (MMM - Free Report) .
Image Source: Zacks Investment Research
As for General Mills, its stock trades at $70 and at a more attractive 15.4X forward earnings multiple. This is pleasantly below the benchmark and the Zacks Food-Miscellaneous Industry average of 17.1X with some of General Mills’ closest competitors being Kraft Heinz (KHC - Free Report) and Conagra Brands (CAG - Free Report) .
Image Source: Zacks Investment Research
Dividend Comparison
In regards to dividends, General Mills’ stock also stands out and has a 3.38% annual yield that tops the S&P 500’s 1.3% with GE Aerospace’s at 0.2% after scaling back its payout following the pandemic.
Image Source: Zacks Investment Research
Bottom Line
The expansive rebound in GE Aerospace’s top and bottom lines has certainly caught investors’ attention along with the blazing price performance in its stock this year. With that being said, General Mills’ reasonable valuation and generous dividend is hard to overlook as well and for now both stocks land a Zacks Rank #3 (Hold).