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Is General Mills (GIS) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is General Mills (GIS - Free Report) . GIS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 15.33 right now. For comparison, its industry sports an average P/E of 19.47. Over the past 52 weeks, GIS's Forward P/E has been as high as 16.32 and as low as 12.24, with a median of 15.55.

We also note that GIS holds a PEG ratio of 2.19. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GIS's industry currently sports an average PEG of 2.65. Over the past 52 weeks, GIS's PEG has been as high as 2.33 and as low as 1.69, with a median of 2.21.

These are only a few of the key metrics included in General Mills's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, GIS looks like an impressive value stock at the moment.


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