Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
Sep 23, 2020
General Mills (GIS, $57.67) crushes fiscal Q1 earnings expectations

General Mills (GIS, $57.67) crushes fiscal Q1 earnings expectations

General Mills Inc. reported its fiscal first quarter earnings that handily beat analysts’ expectations.  

The packaged food company’s  adjusted earnings for the three months ending in August came in at $1.00 per share, well ahead of the Street estimates of 87 cents a share. The figure is also +28.2% higher from the year-ago quarter.

Revenues climbed 10% year-over-year to $4 billion in the quarter.

CEO Jeff Harmening mentioned that they are resuming dividend growth sooner than initially planned. The company hiked  its quarterly dividend by +4% to 51 cents per share.

Without providing guidance for  2021 earnings ,General Mills said the most crucial factor to both its revenue and profits will be the relative balance between stay-at-home and return-to-work trends in consumer food demand, amid the coronavirus pandemic situation.

“We continued to drive exceptional results this quarter, highlighted by broad-based market share gains amid elevated at-home food demand due to the COVID-19 pandemic,” said CEO Jeff Harmening. “The fundamentals of our business are strong. We’re investing in our brands, executing with speed and agility, and maintaining our focus on the health and safety of our employees and our consumers."

Tickeron's analysis shows: 

A.I.dvisor

published a Scorecard

4:00 PM EDT Sep 22

GIS in upward trend: price may jump up because it broke its lower Bollinger Band on September 08, 2020

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 19 of 36 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 53%.

Current price $57.67 crossed the support line at $58.39 and is trading between $58.39 support and $55.75 support lines. Throughout the month of 08/20/20 - 09/22/20, the price experienced a -10% Downtrend. During the week of 09/15/20 - 09/22/20, the stock fell -2%.

Technical Analysis (Indicators)

Bullish Trend Analysis

The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where GIS's RSI Oscillator exited the oversold zone, 10 of 24 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 42%.

The Stochastic Indicator shows that the ticker has stayed in the oversold zone for 10 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 +1.17% 3-day Advance, the price is estimated to grow further. Considering data from situations where GIS advanced for three days, in 165 of 337 cases, the price rose further within the following month. The odds of a continued upward trend are 49%.

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on September 03, 2020. You may want to consider selling the stock, shorting the stock, or exploring put options on GIS as a result. In 47 of 96 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 49%.

The Moving Average Convergence Divergence Histogram (MACD) for GIS turned negative on August 28, 2020. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 53 similar instances when the indicator turned negative. In 24 of the 53 cases the stock turned lower in the days that followed. This puts the odds of success at 45%.

GIS moved below its 50-day Moving Average on September 03, 2020 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 September 08, 2020. This indicates that the trend has shifted lower and could be considered a sell signal. In 9 of 17 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 53%.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where Apple declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 42%

The Aroon Indicator for GIS entered a downward trend on September 10, 2020. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Fundamental Analysis (Ratings)

Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 78%. During the last month, the daily ratio of advancing to declining volumes was 1.11 to 1.

The Tickeron Valuation Rating of 20 (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 (4.39) is normal, around the industry mean (4.07). P/E Ratio (16.31) is within average values for comparable stocks, (27.09). Projected Growth (PEG Ratio) (0.77) is also within normal values, averaging (0.94). Dividend Yield (3.11) settles around the average of (2.24) among similar stocks. P/S Ratio (2.20) is also within normal values, averaging (2.92).

The Tickeron SMR rating for this company is 36 (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 55 (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 Profit vs. Risk Rating rating for this company is 63 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock slightly better than average.

The Tickeron PE Growth Rating for this company is 64 (best 1 - 100 worst), pointing to 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.

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