Back to top

General Mills (GIS) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

General Mills (GIS - Free Report) closed at $54.39 in the latest trading session, marking a +0.18% move from the prior day. This change lagged the S&P 500's 1.5% gain on the day. At the same time, the Dow added 1.48%, and the tech-heavy Nasdaq gained 1.95%.

Prior to today's trading, shares of the maker of Cheerios cereal, Yoplait yogurt and other packaged foods had gained 2.16% over the past month. This has outpaced the Consumer Staples sector's loss of 0.62% and the S&P 500's loss of 4.19% in that time.

GIS will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.77, up 8.45% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.10 billion, up 0.08% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.37 per share and revenue of $17.44 billion, which would represent changes of +4.66% and +3.42%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for GIS. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. GIS currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, GIS is holding a Forward P/E ratio of 16.11. This valuation marks a discount compared to its industry's average Forward P/E of 18.58.

It is also worth noting that GIS currently has a PEG ratio of 2.3. 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. GIS's industry had an average PEG ratio of 2.51 as of yesterday's close.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 151, putting it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


General Mills, Inc. (GIS) - free report >>

Published in