Back to top

Image: Bigstock

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

Read MoreHide Full Article

General Mills (GIS - Free Report) closed the most recent trading day at $60.73, moving -1.38% from the previous trading session. This change lagged the S&P 500's 1.05% loss on the day. At the same time, the Dow lost 1.59%, and the tech-heavy Nasdaq lost 0.54%.

GIS will be looking to display strength as it nears its next earnings release. On that day, GIS is projected to report earnings of $1.05 per share, which would represent year-over-year growth of 26.51%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.88 billion, up 17.18% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.55 per share and revenue of $17.44 billion, which would represent changes of +10.25% and +3.4%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for GIS. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 3.49% higher. GIS currently has a Zacks Rank of #2 (Buy).

Digging into valuation, GIS currently has a Forward P/E ratio of 17.36. For comparison, its industry has an average Forward P/E of 19.72, which means GIS is trading at a discount to the group.

Meanwhile, GIS's PEG ratio is currently 2.31. 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. GIS's industry had an average PEG ratio of 3.5 as of yesterday's close.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


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


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

Published in