General Mills (GIS, $48.25 ) downgraded by Goldman Sachs analysts on future performance concern
General Mills got a rating downgrade from Goldman Sachs analysts, leading to its shares slumping on Wednesday.
Analyst Jason English lowered his rating on the company's stock to sell from neutral. He also reduced his 12-month price target to $41 from $40.
While the consumer food company’s shares have had an almost +24% rally year-to-date, English seems to think that a slowdown in performance is inevitable.
English’s projections on General Mills’ revenue for each quarter through 2021 are lower than the Wall Street consensus. Although he believes that the company’s earnings could beat consensus estimates by two cents a share when it reports its results next month, he also seems to think that earnings will most likely fall short of consensus expectations going forward.
The company has had its share of challenges in recent times. In January, it voluntarily recalled certain bags of its Gold Medal branded unbleached flour over salmonella concerns.
However, there could be some potential tailwinds (atleast for the near-term). On Wednesday, General Mills released its preliminary fiscal-fourth quarter results for its pet food unit, where net sales climbed +38%.
General Mills shares ended -5.5% down on Wednesday, following Goldman Sachs analysts’ bleak outlook for the company’s future prospects.
GIS's RSI Oscillator ascends from oversold territory
The RSI Oscillator for GIS moved out of oversold territory on May 15, 2025. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 25 similar instances when the indicator left oversold territory. In of the 25 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for GIS just turned positive on May 16, 2025. Looking at past instances where GIS's MACD turned positive, the stock continued to rise in of 52 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GIS advanced for three days, in of 325 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 61 cases where GIS's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on May 21, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on GIS as a result. In of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GIS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for GIS entered a downward trend on May 22, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.195) is normal, around the industry mean (6.577). P/E Ratio (16.085) is within average values for comparable stocks, (27.155). Projected Growth (PEG Ratio) (2.061) is also within normal values, averaging (2.471). Dividend Yield (0.033) settles around the average of (0.043) among similar stocks. P/S Ratio (2.038) is also within normal values, averaging (68.169).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. GIS’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. GIS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock worse than average.
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General Information
a manufacturer of consumer food products
Industry FoodSpecialtyCandy
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