General Mills (GIS, $60.56) beats fiscal Q4 earnings expectations
General Mills reported fiscal fourth quarter earnings and sales that surpassed analysts’ expectations. The food company’s results were bolstered by at-home food demand amid the coronavirus crisis.
Adjusted earnings for the quarter rose to $1.10 an adjusted share, from the year-ago quarter’s 94 cents a share. The figure beat the $1.06 expected by analysts polled by FactSet.
Sales climbed +21% year-over-year to $5.02 billion, compared to analysts’ estimate of $5 billion.
Strong demand for baking goods, cereals, snacks and pastries led to accelerated net sales growth in the North America Retail segment, according to the company. At-home demand was less strong in Europe and Australia.
General Mills said is not providing any guidance for fiscal 2021. The company indicated that there is high uncertainty regarding the degree of consumers’ preference for stay-at-home vs. eating and dining-out habits as how the economy recovers from the pandemic is still uncertain.
Tickeron sees GIS in Uptrend: Stochastic indicator leaves oversold zone
Leaving the oversold zone means the ticker price trend may be in a reversal from a Downtrend to an Uptrend. This is a chance to buy the ticker or explore call options. In 29 of 56 cases where GIS's Stochastic Indicator exited the oversold zone, the price rose further within the following month. The odds of a continued Uptrend are 52%.
Current price $60.56 crossed the resistance line at $61.27 and is trading between $61.27 resistance and $58.85 resistance lines. Throughout the month of 05/29/20 - 06/30/20, the price experienced a -2% Downtrend, while the week of 06/23/20 - 06/30/20 shows a +1% Uptrend.
Technical Analysis (Indicators)
Bullish Trend Analysis
The price moved above its 50-day Moving Average, which indicates a change from a Downtrend to an Uptrend. In 22 of 49 similar backtested cases where GIS's price crossed above its 50-day Moving Average, its price rose further within the subsequent month. The odds of a continued Uptrend are 45%.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GIS advanced for three days, in 161 of 336 cases, the price rose further within the following month. The odds of a continued Uptrend are 48%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on June 22, 2020. Traders may consider selling the ticker, shorting the ticker, or exploring put options. In 43 of 97 cases where GIS's Momentum Indicator fell below the 0 level, its price fell further within the subsequent month. The odds of a continued Downtrend are 44%.
The Moving Average Convergence Divergence (MACD) crossed below the signal line. In 26 of 54 cases where GIS's MACD histogram became negative, the price fell further within the following month. The odds of a continued Downtrend are 48%.
The 10-day Moving Average for this ticker crossed below its 50-day Moving Average on June 30, 2020. This can be construed as a sell signal, indicating that the trend is shifting lower. In 8 of 17 cases where GIS's 10-day Moving Average crossed below its 50-day Moving Average, its price fell further within the subsequent month. The odds of a continued Downtrend are 47%.
Fundamental Analysis (Ratings)
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 76%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.36.
The Tickeron Valuation Rating of 25 (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 (4.93) is normal, around the industry mean (4.29). P/E Ratio (17.73) is within average values for comparable stocks, (26.87). Projected Growth (PEG Ratio) (0.43) is also within normal values, averaging (1.27). Dividend Yield (3.71) settles around the average of (2.37) among similar stocks. P/S Ratio (1.97) is also within normal values, averaging (2.19).
The Tickeron SMR rating for this company is 39 (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 46 (best 1 - 100 worst), indicating steady price growth. GIS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 50 (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.
The Tickeron Profit vs. Risk Rating rating for this company is 58 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 84, placing this stock slightly better than average.
GIS's RSI Oscillator leaves overbought zone
The 10-day RSI Indicator for GIS moved out of overbought territory on September 11, 2024. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 30 instances where the indicator moved out of the overbought zone. In of the 30 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
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 .
The Moving Average Convergence Divergence Histogram (MACD) for GIS turned negative on September 12, 2024. 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 55 similar instances when the indicator turned negative. In of the 55 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 16, 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.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 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 .
GIS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call 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 (6.502). 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 (66.254).
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 steady price growth. GIS’s price grows at a higher 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