In the latest trading session, General Mills (GIS) closed at $51.26, marking a -0.1% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.21%. At the same time, the Dow lost 0.46%, and the tech-heavy Nasdaq lost 0.16%.
Coming into today, shares of the maker of Cheerios cereal, Yoplait yogurt and other packaged foods had gained 2.03% in the past month. In that same time, the Consumer Staples sector gained 2.5%, while the S&P 500 gained 2.07%.
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 $0.75 per share, which would represent a year-over-year decline of 5.06%. Our most recent consensus estimate is calling for quarterly revenue of $4.23 billion, up 8.74% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.14 per share and revenue of $16.93 billion, which would represent changes of +0.96% and +7.56%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for GIS. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. 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 16.34. This valuation marks a discount compared to its industry's average Forward P/E of 19.6.
Meanwhile, GIS's PEG ratio is currently 2.18. 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 2.3 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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