General Mills (GIS) closed at $44.84 in the latest trading session, marking a +1.93% move from the prior day. This move outpaced the S&P 500's daily gain of 1.29%. Meanwhile, the Dow gained 1.49%, and the Nasdaq, a tech-heavy index, added 1.46%.
Heading into today, shares of the maker of Cheerios cereal, Yoplait yogurt and other packaged foods had gained 5.26% over the past month, lagging the Consumer Staples sector's gain of 5.28% and outpacing the S&P 500's gain of 4.57% in that time.
Investors will be hoping for strength from GIS as it approaches its nex t earnings release. The company is expected to report EPS of $0.69, down 12.66% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.18 billion, up 7.58% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.08 per share and revenue of $16.94 billion, which would represent changes of -0.96% and +7.63%, respectively, from the prior year.
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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.04% higher. GIS is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that GIS has a Forward P/E ratio of 14.29 right now. Its industry sports an average Forward P/E of 16.19, so we one might conclude that GIS is trading at a discount comparatively.
We can also see that GIS currently has a PEG ratio of 1.97. 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 2.04 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 178, putting it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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