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.