General Mills (GIS) Stock Sinks As Market Gains: What You Should Know
General Mills (GIS) closed the latest trading day at $65.61, indicating a -0.26% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.13%. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq lost 0.32%.
Prior to today's trading, shares of the maker of Cheerios cereal, Yoplait yogurt and other packaged foods had gained 1.59% over the past month. This has lagged the Consumer Staples sector's gain of 2.56% and the S&P 500's gain of 2.99% in that time.
The upcoming earnings release of General Mills will be of great interest to investors. In that report, analysts expect General Mills to post earnings of $1.04 per share. This would mark year-over-year growth of 7.22%. In the meantime, our current consensus estimate forecasts the revenue to be $4.99 billion, indicating a 2.67% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.49 per share and revenue of $19.97 billion, which would represent changes of +4.42% and -0.6%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for General Mills. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.02% upward. Currently, General Mills is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, General Mills is presently being traded at a Forward P/E ratio of 14.66. This indicates a discount in contrast to its industry's Forward P/E of 17.25.
It is also worth noting that GIS currently has a PEG ratio of 2.3. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. GIS's industry had an average PEG ratio of 2.2 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 151, finds itself in the bottom 41% echelons 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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General Mills, Inc. (GIS) : Free Stock Analysis Report
