General Mills (NYSE:GIS) closed the most recent trading day at $52.45, moving -1% from the previous trading session. This move lagged the S&P 500's daily gain of 0.97%. Meanwhile, the Dow gained 1.35%, and the Nasdaq, a tech-heavy index, added 1.39%.
Coming into today, shares of the maker of Cheerios cereal, Yoplait yogurt and other packaged foods had gained 0.51% in the past month. In that same time, the Consumer Staples sector gained 1.05%, while the S&P 500 gained 0.64%.
Investors will be hoping for strength from GIS as it approaches its next earnings release, which is expected to be June 26, 2019. In that report, analysts expect GIS to post earnings of $0.76 per share. This would mark a year-over-year decline of 3.8%. Our most recent consensus estimate is calling for quarterly revenue of $4.23 billion, up 8.75% from the year-ago period.
Investors should also note any recent changes to analyst estimates for GIS. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. GIS currently has a Zacks Rank of #2 (Buy).
In terms of valuation, GIS is currently trading at a Forward P/E ratio of 15.87. This represents a discount compared to its industry's average Forward P/E of 17.47.
It is also worth noting that GIS currently has a PEG ratio of 2.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Food - Miscellaneous stocks are, on average, holding a PEG ratio of 2.44 based on yesterday's closing prices.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 148, putting it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow GIS in the coming trading sessions, be sure to utilize Zacks.com.
General Mills, Inc. (GIS): Free Stock Analysis Report
Original post