U.S. markets closed
  • S&P 500

    3,821.55
    -78.56 (-2.01%)
     
  • Dow 30

    30,946.99
    -491.27 (-1.56%)
     
  • Nasdaq

    11,181.54
    -343.01 (-2.98%)
     
  • Russell 2000

    1,738.84
    -32.90 (-1.86%)
     
  • Crude Oil

    111.84
    +2.27 (+2.07%)
     
  • Gold

    1,821.40
    -3.40 (-0.19%)
     
  • Silver

    20.77
    -0.39 (-1.86%)
     
  • EUR/USD

    1.0523
    -0.0063 (-0.60%)
     
  • 10-Yr Bond

    3.2060
    +0.0120 (+0.38%)
     
  • GBP/USD

    1.2184
    -0.0086 (-0.70%)
     
  • USD/JPY

    136.1080
    +0.6620 (+0.49%)
     
  • BTC-USD

    20,322.16
    -574.67 (-2.75%)
     
  • CMC Crypto 200

    441.05
    -9.01 (-2.00%)
     
  • FTSE 100

    7,323.41
    +65.09 (+0.90%)
     
  • Nikkei 225

    27,049.47
    +178.20 (+0.66%)
     

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

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

General Mills (GIS) closed the most recent trading day at $68.98, moving +1.59% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.95%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.15%.

Heading into today, shares of the maker of Cheerios cereal, Yoplait yogurt and other packaged foods had lost 1.96% over the past month, lagging the Consumer Staples sector's loss of 1.09% and outpacing the S&P 500's loss of 3.49% 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 June 29, 2022. In that report, analysts expect General Mills to post earnings of $1.01 per share. This would mark year-over-year growth of 10.99%. Our most recent consensus estimate is calling for quarterly revenue of $4.8 billion, up 6.04% from the year-ago period.

Investors might also notice recent changes to analyst estimates for General Mills. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 0.66% lower. General Mills currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that General Mills has a Forward P/E ratio of 17.11 right now. For comparison, its industry has an average Forward P/E of 17.55, which means General Mills is trading at a discount to the group.

Meanwhile, GIS's PEG ratio is currently 2.28. 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. The Food - Miscellaneous industry currently had an average PEG ratio of 2.55 as of yesterday's close.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 42% 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
 
To read this article on Zacks.com click here.