U.S. Markets open in 2 hrs 13 mins

General Mills (GIS) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

General Mills (GIS) closed the most recent trading day at $52.84, moving +0.86% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.47%. Elsewhere, the Dow lost 0.29%, while the tech-heavy Nasdaq added 0.85%.

Heading into today, shares of the maker of Cheerios cereal, Yoplait yogurt and other packaged foods had lost 2.44% over the past month, lagging the Consumer Staples sector's gain of 1.56% and the S&P 500's gain of 2.08% in that time.

Investors will be hoping for strength from GIS as it approaches its next earnings release. On that day, GIS is projected to report earnings of $0.77 per share, which would represent year-over-year growth of 8.45%. Meanwhile, our latest consensus estimate is calling for revenue of $4.09 billion, up 0.01% from the prior-year quarter.

GIS's full-year Zacks Consensus Estimates are calling for earnings of $3.37 per share and revenue of $17.43 billion. These results would represent year-over-year changes of +4.66% and +3.35%, respectively.

Any recent changes to analyst estimates for GIS should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.71% higher. GIS is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, GIS is currently trading at a Forward P/E ratio of 15.55. Its industry sports an average Forward P/E of 18.48, so we one might conclude that GIS is trading at a discount comparatively.

It is also worth noting that GIS currently has a PEG ratio of 2.22. 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 2.36 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 102, putting it in the top 40% 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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
General Mills, Inc. (GIS) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research