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

Zacks Equity Research
·2-min read

General Mills (GIS) closed the most recent trading day at $63.42, moving -0.19% from the previous trading session. This change lagged the S&P 500's daily gain of 0.82%. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq gained 0.59%.

Investors will be hoping for strength from GIS as it approaches its next earnings release. In that report, analysts expect GIS to post earnings of $1.05 per share. This would mark year-over-year growth of 26.51%. Meanwhile, our latest consensus estimate is calling for revenue of $4.89 billion, up 17.42% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for GIS. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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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 has moved 0.9% higher within the past month. GIS is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that GIS has a Forward P/E ratio of 18.23 right now. This represents a discount compared to its industry's average Forward P/E of 18.44.

We can also see that GIS currently has a PEG ratio of 2.43. 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 3.39 as of yesterday's close.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 41, putting it in the top 17% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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