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General Mills (GIS) Ascends While Market Falls: Some Facts to Note

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In the latest market close, General Mills (GIS - Free Report) reached $65.75, with a +0.15% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily loss of 1.18%. On the other hand, the Dow registered a loss of 0.76%, and the technology-centric Nasdaq decreased by 1.76%.

The maker of Cheerios cereal, Yoplait yogurt and other packaged foods's shares have seen an increase of 2.5% over the last month, surpassing the Consumer Staples sector's loss of 1.87% and the S&P 500's loss of 3.35%.

The investment community will be paying close attention to the earnings performance of General Mills in its upcoming release. On that day, General Mills is projected to report earnings of $1.17 per share, which would represent year-over-year growth of 6.36%. Meanwhile, the latest consensus estimate predicts the revenue to be $5.42 billion, indicating a 3.82% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.49 per share and revenue of $20.67 billion. These totals would mark changes of +4.42% and +2.88%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for General Mills. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% decrease. 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 14.64. This valuation marks a discount compared to its industry's average Forward P/E of 15.2.

One should further note that GIS currently holds a PEG ratio of 2.2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Food - Miscellaneous stocks are, on average, holding a PEG ratio of 2.27 based on yesterday's closing prices.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 35% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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