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General Mills (GIS) Dips More Than Broader Markets: What You Should Know

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General Mills (GIS - Free Report) closed the most recent trading day at $75.30, moving -1.85% from the previous trading session. This change lagged the S&P 500's daily loss of 0.41%. At the same time, the Dow lost 0.55%, and the tech-heavy Nasdaq gained 0.07%.

Prior to today's trading, shares of the maker of Cheerios cereal, Yoplait yogurt and other packaged foods had gained 0.47% over the past month. This has outpaced the Consumer Staples sector's loss of 3.49% and the S&P 500's loss of 5.13% in that time.

Wall Street will be looking for positivity from General Mills as it approaches its next earnings report date. This is expected to be September 21, 2022. The company is expected to report EPS of $0.98, down 1.01% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.62 billion, up 1.69% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4 per share and revenue of $19.37 billion, which would represent changes of +1.52% and +1.99%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for General Mills. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. General Mills is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that General Mills has a Forward P/E ratio of 19.16 right now. For comparison, its industry has an average Forward P/E of 19.01, which means General Mills is trading at a premium to the group.

It is also worth noting that GIS currently has a PEG ratio of 2.56. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Food - Miscellaneous stocks are, on average, holding a PEG ratio of 2.79 based on yesterday's closing prices.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 136, putting it in the bottom 47% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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