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 in upward trend: price expected to rise as it breaks its lower Bollinger Band on October 21, 2024
GIS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 43 cases where GIS's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 13 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GIS advanced for three days, in of 337 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 02, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on GIS as a result. In of 90 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
GIS moved below its 50-day moving average on October 10, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for GIS crossed bearishly below the 50-day moving average on October 16, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 20 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following 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 October 28, 2024. 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 (6.522). P/E Ratio (16.085) is within average values for comparable stocks, (26.887). 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 (66.610).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock slightly better than average.
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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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.
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General Information
a manufacturer of consumer food products
Industry FoodSpecialtyCandy