General Mills (GIS) closed at $61.80 in the latest trading session, marking a +0.02% move from the prior day. This change outpaced the S&P 500's 0.36% loss on the day. At the same time, the Dow lost 0.65%, and the tech-heavy Nasdaq gained 0.15%.
Investors will be hoping for strength from GIS as it approaches its next earnings release, which is expected to be July 1, 2020. The company is expected to report EPS of $1.04, up 25.3% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.89 billion, up 17.42% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for GIS. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 0.29% higher within the past month. GIS is currently a Zacks Rank #3 (Hold).
Looking at its valuation, GIS is holding a Forward P/E ratio of 17.69. For comparison, its industry has an average Forward P/E of 18.82, which means GIS is trading at a discount to the group.
It is also worth noting that GIS currently has a PEG ratio of 2.36. 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. Food - Miscellaneous stocks are, on average, holding a PEG ratio of 3.33 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 40, putting it in the top 16% 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.
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