General Mills (GIS) Stock Sinks As Market Gains: What You Should Know
General Mills (GIS) closed the most recent trading day at $76.80, moving -1.37% from the previous trading session. This move lagged the S&P 500's daily gain of 1.1%. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq gained 6.59%.
Coming into today, shares of the maker of Cheerios cereal, Yoplait yogurt and other packaged foods had lost 8.13% in the past month. In that same time, the Consumer Staples sector lost 1.44%, while the S&P 500 gained 4.58%.
General Mills will be looking to display strength as it nears its next earnings release. In that report, analysts expect General Mills to post earnings of $0.88 per share. This would mark year-over-year growth of 4.76%. Meanwhile, our latest consensus estimate is calling for revenue of $4.83 billion, up 6.49% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.12 per share and revenue of $19.86 billion. These totals would mark changes of +4.57% and +4.55%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for General Mills. Recent revisions tend to reflect the latest 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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.13% higher within the past month. General Mills currently has a Zacks Rank of #3 (Hold).
Investors should also note General Mills's current valuation metrics, including its Forward P/E ratio of 18.88. Its industry sports an average Forward P/E of 18.73, so we one might conclude that General Mills is trading at a premium comparatively.
It is also worth noting that GIS currently has a PEG ratio of 2.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Food - Miscellaneous was holding an average PEG ratio of 2.82 at yesterday's closing price.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 24% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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