Our coverage:

General Mills (GIS) is valued modestly, but why is the sentiment negative?

Royston Roche | 2:40 am ET, 18 Dec 2018

General Mills, Inc. (GIS) shares are trading at $36.74, down 2%. The company is announcing its quarterly earnings results on Wednesday before the market opens. What's driving GIS stock price? What's GIS stock price forecast?

General Mills manufactures and markets branded consumer foods. The stock fell 33% in the past year. The company is available at a forward P/E ratio of 13.06, which presents a significant discount compared to its industry peers.

Investors are showing interest in the company because of its attractive dividend yield.  On the other hand, a few bearish investors worry about disappointing J.M. Smucker's results. Last quarter the company's revenue rose 8.5% to $4.09 billion and earnings per share came at 71 cents.

Second-quarter FY19 results will be released before market open on December 19, 2018.  Analysts expect the company to earn 81 cents per share on revenue of $4.52 billion. The company beat analysts’ estimates three times in the previous four quarters.

What is the sentiment towards the GIS stock? Our technical analysis shows that: 

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is trending negative;
  • The long-term sentiment (9-12 months) is negative. 

General Mills, Inc. (GIS) forward P/E ratio is 13.06, and it’s low compared to its industry peers’ P/E ratios.

General Mills, Inc. (GIS) average analyst price target ($48.37) is 24.89% above its current price ($38.73).

For the latest price and information on General Mills, Inc., please visit Finstead and search for "GIS price" or "GIS news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


General Mills (GIS) stock: will it return to growth?

Carla Olson | 9:12 am ET, 18 Sep 2018

General Mills, Inc. (GIS) shares are trading at $46.61, down -2%.  The food company’s sales declined 2.1% in North America in the latest quarter, so the share price dropped accordingly.  What's GIS stock price forecast?  What should investors know about General Mills?

General Mills stock has fallen 20% in 2018. Consumer staples stocks have underperformed the overall market. 

The company recently reaffirmed the fiscal year outlook of net sales growth of 9-10 percent and organic net sales ranging flat to 1 percent growth.

The overall sales for General Mills rose in the latest quarter despite a decline in its North American business.  The company said that net sales rose 8.6% to $4.09 billion. Sales climbed in Europe, Australia, Asia, and Latin America, as well as in the convenience stores and food-service division.  The analysts expected the company to earn $0.64 per share on revenue of $4.12 billion.  

The bulls feel that the acquisition of Blue Buffalo will give the company an opportunity to tap into the fast-growing U.S. pet food market. The bears are tightening the grip on the stock as they feel that operational costs are increasing.  The company was able to beat estimates or provide in-line results in the past four quarters.

What is the sentiment towards the GIS stock? Our technical analysis shows that: 

  • The stock short-term sentiment (next 30 days) is trending positive;
  • The mid-term sentiment (3-6 months) is trending positive;
  • The long-term sentiment (9-12 months) is trending negative.

Over the last month, General Mills, Inc. (GIS) returned +4.98%.

General Mills, Inc. (GIS) short share of float is 4.2%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

General Mills, Inc. (GIS) average analyst price target ($48.63) is 2.53% above its current price ($47.43).

For the latest price and information on General Mills, Inc., please visit Finstead and search for "GIS price" or "GIS news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


General Mills, Inc. (GIS) Buy or Sell Stock Guide

Updated at: 2:23 pm ET, 24 Dec 2018

The analysis below may be helpful to you if you have any of the following questions about GIS stock:

  • Is GIS a buy or a sell?
  • Should I sell or hold GIS stock today?
  • Is GIS a good buy / a good investment?
  • What are GIS analyst opinions, recommendations, ratings?

Here are GIS stock buy reasons/signals:

1. In our view, General Mills' focus on driving cost efficiency is prudent and should provide the fuel to fund further brand spending.

2. Since fiscal 2012, the convenience and food-service segment has seen more than 500 basis points of operating margin gains to nearly 20% by shedding unprofitable fare and expanding its distribution into restaurants and convenience stores.

3. Annie's doubled General Mills' sales from the natural and organic aisle, a category with attractive growth prospects--growing 3 times faster than overall grocery sales--that now accounts for about 5% of its total sales.

4. GIS stock price ($37.69) is close to the 52-week low ($36.70). Perhaps now is a good time to buy?

5. GIS quarterly revenue growth was 8.60%, higher than the industry and sector average revenue growth (4.19% and 5.25%, respectively).

6. GIS profitability is improving. The YoY profit margin change was 2.93pp.

7. GIS forward dividend yield is 5.08%, higher than the industry (1.16%) and sector (0.86%) forward dividend yields.

8. GIS forward P/E ratio is 11.54, and it’s low compared to its industry peers’ P/E ratios.

9. GIS average analyst price target ($48.37) is above its current price ($37.69).

Here are GIS stock sell reasons/signals:

1. Grains represent 5%-10% of the firm's cost of goods. Continued swings in raw material costs could resurface if unfavorable weather conditions arise.

2. General Mills' yogurt business has succumbed to intense competitive pressures, with sales down 20% in the third quarter on top of a 10% decline in the year-ago period, highlighting the challenge to consistently bring on-trend new products to market.

3. Reduced display merchandising has weighed on General Mills' U.S. snack and cereal businesses, which each posted low-single-digit sales declines in fiscal 2016.

4. GIS PEG ratio (P/E adjusted for growth) is 2.15, and it’s high compared to its industry peers’ PEG ratios.

5. GIS short interest (days to cover the shorts) ratio is 3.63. The stock garners more short interest than the average industry, sector or S&P 500 stock.

What are your thoughts on GIS?

If you liked this analysis, check out Buy or Sell Stock Guides for other stocks.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


Try Finstead: the fastest way to get market data and insights on stocks, ETFs, mutual funds, and cryptocurrencies